Cadence Acts As Sole Structuring Agent On $40 Million Securitization for FAT Brands

Rhea-AI Summary

Cadence Group, a fintech securitization platform, has successfully closed a $40 million subordinated note for FAT Brands Inc. (NASDAQ: FAT). This follows FAT's previous $40 million securitization in March, bringing the total to $80 million. Proceeds will primarily fund FAT Brands' acquisition of Johnny Rockets. Both securitizations were recorded on the Ethereum blockchain for enhanced transparency. Cadence has arranged over $155 million in notes since 2018, showcasing its commitment to innovation in the capital markets.

Positive

• Successful closure of a $40 million subordinated note for FAT Brands, indicating robust financial backing.
• Total securitization facility reaches $80 million, showing strong investor interest.
• Proceeds primarily fund the strategic acquisition of Johnny Rockets, enhancing FAT's brand portfolio.
• Transparency through blockchain utilization in securitizations, aligning with industry trends.

Negative

• None.

NEW YORK, Sept. 22, 2020 /PRNewswire/ -- Cadence Group, Inc., a leading fintech securitization platform, is pleased to announce the closing of a $40-million subordinated note for FAT Brands Inc. (NASDAQ: FAT), in which Cadence, through its institutional arm, acted as the sole structuring agent.

This offering follows FAT's inaugural $40 million whole business securitization in March, in which Cadence also acted as the sole lead, bringing the entire securitization facility to a total of $80 million. Two institutional investors participated in the offering, with proceeds to primarily fund FAT Brands' recently announced acquisition of Johnny Rockets, an American restaurant franchise.

"This whole business securitization was designed to support both opportunistic and transformative acquisitions," said Cadence Head of Capital Markets Prath Reddy, "and we're thrilled to see this come to fruition with FAT's swift expansion to acquire such an iconic brand."

Similar to the ground-breaking March offering, this transaction was also recorded on the Ethereum blockchain. Using ERC-20 tokens, the reflective digital asset provides an added layer of transparency into the number of investors and the movement of cash and securities across the issuer, investors, and the trustee.

"We are constantly striving to push the industry forward with greater transparency," Cadence Founder and CEO Nelson Chu said, "and our ability to arrange these transactions enables us to demonstrate just how beneficial and impactful it can be."

Founded in 2018, Cadence has positioned itself at the forefront of industry trends. Its retail investment platform for accredited investors has seen a surge in growth since going live in July 2019. More than $155 million in notes have been issued across 125+ offerings with 14 originators. To date, the company has returned more than $124 million in principal and paid out over $3 million in interest.

The transaction can be viewed using a blockchain explorer such as Etherscan by searching "FAT Brands 2020-2 M2 Tranche," as well as through Cadence's Private Credit Explorer App on the Bloomberg Terminal at {APPS CADENCE < GO >}.

Manatt, Phelps & Phillips, LLP served as legal advisors for Cadence on the transaction, while UMB Bank, N.A. acted as Trustee, Vervent, Inc. as Backup Manager, and Citadel SPV LLC as Control Party.

About Cadence
Cadence is the leading fintech securitization platform for private credit. The company has developed a platform to streamline the securitization process for specialty finance originators at every stage of growth. Their suite of software and services is built with both institutional and retail investors in mind, integrating directly into their existing workflows and providing exposure to innovative securitized products. Learn more at withcadence.io or on the Bloomberg Terminal at {APPS CADENCE < GO >}.

Contact:
Brian Guerra
Cadence Group, Inc.
646-876-5841
brian@withcadence.io

 

View original content:http://www.prnewswire.com/news-releases/cadence-acts-as-sole-structuring-agent-on-40-million-securitization-for-fat-brands-301136123.html

SOURCE Cadence

FAQ

What is the recent financial transaction involving FAT Brands?

Cadence Group closed a $40 million subordinated note for FAT Brands, bringing the total securitization to $80 million.

How will the proceeds from the $40 million note be used?

The proceeds will primarily fund FAT Brands' acquisition of Johnny Rockets.

Who acted as the structuring agent for FAT Brands' recent note?

Cadence Group acted as the sole structuring agent for the $40 million subordinated note.

How does this transaction impact FAT Brands' financial strategy?

The transaction supports FAT Brands' strategy for opportunistic and transformative acquisitions.

What is the significance of using blockchain in this securitization?

Using blockchain enhances transparency regarding investor participation and fund movements.