FAT Brands plans $30 million $25-par 8.25% non-convertible preferreds

By James McCandless

San Antonio, July 3 – FAT Brands Inc. plans to price an offering of $30 million series B non-convertible preferred stock with a dividend of 8.25%, according to a press release.

The preferreds are part of a best-efforts offering that also includes common stock purchase warrants.

TriPoint Global Equities, LLC is the bookrunner.

Digital Offering, LLC is the co-manager.

Each preferred share will come with a warrant to purchase 0.60 of a share of common stock at an exercise price of $8.50 per share.

The preferreds are redeemable one year after issuance at 110%, two years after issuance at 105% and three years after issuance at par.

The preferreds will mature after five years.

The company plans to use the proceeds for the repayment of existing debt, as well as for general working capital and future acquisitions.

FAT Brands is a Beverly Hills, Calif.-based restaurant franchising company.

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