FAT Brands to offer additional $25-par 8.25% cumulative preferreds

By Wendy Van Sickle

Columbus, Ohio, Aug. 2 – FAT Brands Inc. is planning an additional offering 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.

ThinkEquity LLC is the underwriter.

FAT Brands issued an initial $9 million of the 8.25% five-year preferreds in July 2020, and the current liquidation preference of the outstanding series B preferreds is $228,952,725, the company reported in the filing.

The preferreds became callable in whole or in part at $27.50 from July 16, 2020, stepping down annually to $27.00, $26.50, $26.00, $25.50 and to par on July 16, 2025.

The series B preferreds are listed on Nasdaq under the ticker “FATBP.” On Aug. 1, the last reported price of the preferreds was $20.69 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.

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