Chicago, June 17 – FAT Brands Inc. sold a public offering of 400,000 shares of 8.25% series B cumulative preferred stock at a price to the public of $20 per share, according to a press release.
The underwriters have a 45-day option to purchase an additional 60,000 shares.
The $25-par shares were originally issued in July 2020, according to an S-1 registration statement with the Securities and Exchange Commission.
The company registered $11.5 million of the preferred stock with the Securities and Exchange Commission earlier in the week.
Proceeds will be used for general corporate purposes and possible future acquisitions and growth opportunities.
The preferreds are redeemable at the company’s option at par of $25 with a redemption premium of 10%, initially started on July 16, 2020, which decreases by 2% per year until terminating on July 16, 2025.
ThinkEquity was the bookrunning manager for the offering.
Digital Offering, LLC is the financial adviser.
FAT Brands is a Beverly Hills, Calif.-based restaurant franchising company.
| Issuer: | FAT Brands Inc.
|
| Issue: | Series B cumulative preferred stock
|
| Amount: | $8 million, or 400,000 shares
|
| Greenshoe: | 60,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | ThinkEquity
|
| Dividend: | 8.25%
|
| Price: | $20 per share
|
| Call features: | Initially 10% premium, declines by 2% pe year from July 16, 2020
|
| Trade date: | June 17
|
| Settlement date: | June 22
|
| Distribution: | SEC registered
|
| Listing: | Nasdaq: FATBP
|
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