By Marisa Wong
Los Angeles, Oct. 28 – FAT Brands Inc. is offering $25 million liquidation preference of $25-par series B cumulative preferred stock with a dividend of 8.25%, according to a 424B5 filing with the Securities and Exchange Commission.
Each share is being offered at a price of $18 for an aggregate offering amount of $18 million.
ThinkEquity LLC is the underwriter.
FAT Brands issued an initial $9 million of the 8.25% five-year preferreds in July 2020, as previously reported.
The preferreds are callable in whole or in part at 110 from July 16, 2020, stepping down by 2% each year until their termination on July 16, 2025.
The series B preferreds are listed on Nasdaq under the ticker “FATBP.” On Oct. 27, the last reported price of the preferreds was $23.66 per share.
The company plans to use proceeds of the latest issuance for working capital and general corporate purposes.
FAT Brands is a Beverly Hills, Calif.-based restaurant franchising company.
| Issuer: | FAT Brands Inc.
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| Description: | Series B cumulative preferred stock
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| Amount: | $25 million liquidation preference, or 1 million shares
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| Proceeds: | $18 million
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| Maturity: | July 16, 2025
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| Bookrunner: | ThinkEquity, LLC
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| Dividend: | 8.25%
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| Price: | $18.00 per $25.00 preferred
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| Call option: | In whole or in part at 110 from July 16, 2020, stepping down by 2% each year until maturity
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Distribution: | SEC registered
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| Listing: | Nasdaq: FATBP
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