FAT Brands taps ABS to fund Johnny Rockets buy

By Jennifer Kang
23 Sep 2020

Restaurant franchise operator FAT Brands closed its second whole business securitization this year, taking advantage of favourable market conditions. The proceeds of the deal will be used to finance the $25m acquisition of burger dine-in Johnny Rockets.

The $40m unrated transaction consists of just one tranche, a subordinated ‘M-2’ note that carries a 9.75% coupon. The notes priced at an original issue discount of $92 to yield 12.28%, according to Nelson Chu, chief executive officer and founder at blockchain investment firm Cadence. 

Cadence acted as the ...

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