FAT Brands Announces Amendments to Fazoli’s Securitization
FAT Brands (NASDAQ: FAT) has announced key amendments to its Fazoli's Securitization credit facility, enhancing financial flexibility for its Fazoli's and Native Grill & Wings restaurant brands. The modifications include:
- Extension of Class A-2 Notes' Anticipated Repayment Date from January 2025 to July 2026
- Extension of all Notes' Anticipated Call Date from July 2023 to October 2025
- Relaxation of financial covenants related to debt service coverage and leverage ratios, deferred to 2026
- New provisions allowing the refranchising of 57 corporate-owned Fazoli's restaurants
If not repaid or refinanced by the new dates, additional interest will accrue: 2.5% per annum on Class A-2 Notes after the Repayment Date, and 1.0% per annum on each tranche after the Call Date.
FAT Brands (NASDAQ: FAT) ha annunciato importanti modifiche al suo finanziamento tramite Securitization per Fazoli's, migliorando la flessibilità finanziaria per i suoi marchi di ristorazione Fazoli's e Native Grill & Wings. Le modifiche includono:
- Estensione della data di rimborso anticipato delle Note di Classe A-2 da gennaio 2025 a luglio 2026
- Estensione della data di chiamata anticipata di tutte le Note da luglio 2023 a ottobre 2025
- Allentamento dei vincoli finanziari relativi alla copertura del servizio del debito e ai rapporti di leva, rinviati al 2026
- Nuove disposizioni che consentono il refranchising di 57 ristoranti Fazoli's di proprietà aziendale
Se non rimborsate o rifinanziate entro le nuove date, matureranno interessi aggiuntivi: 2,5% annuo sulle Note di Classe A-2 dopo la data di rimborso e 1,0% annuo su ciascuna tranche dopo la data di chiamata.
FAT Brands (NASDAQ: FAT) ha anunciado modificaciones clave a su financiamiento de Securitization para Fazoli's, mejorando la flexibilidad financiera para sus marcas de restaurantes Fazoli's y Native Grill & Wings. Las modificaciones incluyen:
- Extensión de la fecha de reembolso anticipado de las Notas Clase A-2 de enero de 2025 a julio de 2026
- Extensión de la fecha de llamada anticipada de todas las Notas de julio de 2023 a octubre de 2025
- Relajación de los convenios financieros relacionados con la cobertura del servicio de la deuda y los ratios de apalancamiento, aplazados hasta 2026
- Nuevas disposiciones que permiten el refranquiciado de 57 restaurantes Fazoli's de propiedad corporativa
Si no se reembolsan o refinancian antes de las nuevas fechas, se acumularán intereses adicionales: 2.5% anual sobre las Notas Clase A-2 después de la fecha de reembolso, y 1.0% anual sobre cada tramo después de la fecha de llamada.
FAT Brands (NASDAQ: FAT)는 Fazoli's의 자산유동화 금융시설에 대한 주요 수정 사항을 발표하여 Fazoli's 및 Native Grill & Wings 레스토랑 브랜드의 재정적 유연성을 향상시켰습니다. 수정 사항에는 다음이 포함됩니다:
- 클래스 A-2 노트의 예상 상환일을 2025년 1월에서 2026년 7월로 연장
- 모든 노트의 예상 호출일을 2023년 7월에서 2025년 10월로 연장
- 부채 서비스 비율 및 레버리지 비율과 관련된 재무 약정 완화, 2026년으로 연기
- 57개의 법인 소유 Fazoli's 레스토랑의 재프랜차이즈를 허용하는 새로운 조항
새로운 날짜까지 상환되지 않거나 재융자되지 않으면 추가 이자가 발생합니다: 상환일 이후 클래스 A-2 노트에 대해 연 2.5%, 호출일 이후 각 트랜치에 대해 연 1.0%입니다.
FAT Brands (NASDAQ: FAT) a annoncé des modifications clés à son financement par titrisation pour Fazoli's, améliorant la flexibilité financière de ses marques de restaurants Fazoli's et Native Grill & Wings. Les modifications comprennent :
- Extension de la date de remboursement anticipé des Obligations de Classe A-2 de janvier 2025 à juillet 2026
- Extension de la date d'appel anticipé de toutes les Obligations de juillet 2023 à octobre 2025
- Assouplissement des engagements financiers liés à la couverture du service de la dette et aux ratios d'endettement, reportés à 2026
- Nouvelles dispositions permettant le refranchisage de 57 restaurants Fazoli's appartenant à l'entreprise
Si elles ne sont pas remboursées ou refinancées d'ici les nouvelles dates, des intérêts supplémentaires s'accumuleront : 2,5 % par an sur les Obligations de Classe A-2 après la date de remboursement, et 1,0 % par an sur chaque tranche après la date d'appel.
FAT Brands (NASDAQ: FAT) hat wichtige Änderungen an seiner Fazoli's Securitization-Kreditfazilität angekündigt, die die finanzielle Flexibilität für seine Fazoli's- und Native Grill & Wings-Restaurantmarken verbessern. Die Änderungen umfassen:
- Verlängerung des voraussichtlichen Rückzahlungsdatums der Klasse A-2-Anleihen von Januar 2025 auf Juli 2026
- Verlängerung des voraussichtlichen Rückrufdatums aller Anleihen von Juli 2023 auf Oktober 2025
- Lockerung der finanziellen Verpflichtungen in Bezug auf die Schuldendienstdeckung und Verschuldungsquoten, die auf 2026 verschoben werden
- Neue Bestimmungen, die die Re-Franchisierung von 57 unternehmenseigenen Fazoli's-Restaurants ermöglichen
Wenn die Rückzahlung oder Refinanzierung bis zu den neuen Terminen nicht erfolgt, fallen zusätzliche Zinsen an: 2,5 % pro Jahr auf die Klasse A-2-Anleihen nach dem Rückzahlungsdatum und 1,0 % pro Jahr auf jede Tranche nach dem Rückrufdatum.
- Extended repayment timeline provides improved financial flexibility
- Relaxed financial covenants reduce risk of triggering default events
- New ability to refranchise 57 corporate-owned Fazoli's restaurants could improve cash flow
- Additional 2.5% interest penalty if Class A-2 Notes not repaid by July 2026
- Extra 1.0% interest on all tranches if not refinanced by October 2025
Insights
The amendment to FAT Brands' Fazoli's securitization represents a tactical financial maneuver that buys the company valuable time and flexibility. By extending the Anticipated Repayment Date on Class A-2 Notes by 18 months (to July 2026) and pushing the Anticipated Call Date by over two years (to October 2025), management has effectively deferred potential interest rate increases of
More importantly, the relaxation of financial covenants tied to debt service coverage and leverage ratios prevents potential triggering of rapid amortization or default events until 2026. This creates a substantial runway for operational improvements without immediate debt service pressures.
The amendment's permission to refranchise 57 corporate-owned Fazoli's restaurants represents a strategic pivot that could generate immediate cash proceeds while maintaining future royalty streams. For a company with just a
While these amendments provide breathing room, they also signal potential underlying performance challenges that necessitated covenant relaxation in the first place. The restructuring doesn't fundamentally improve business operations but does create a more favorable timeline to address operational issues or refinance under potentially better market conditions.
LOS ANGELES, April 04, 2025 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”), a leading global franchising company and parent company of iconic brands including Round Table Pizza, Fatburger, Johnny Rockets, Twin Peaks, Fazoli’s and 13 other restaurant concepts, announces amendments to its whole business securitization credit facility for its Fazoli’s and Native Grill & Wings restaurant brands (the “Fazoli’s Securitization”).
The amendments to the Fazoli’s Securitization include the following key features:
- The “Anticipated Repayment Date” of the Class A-2 Notes has been extended from January 2025 to July 2026. If the Class A-2 Notes are not repaid or refinanced by the Anticipated Repayment Date, additional interest of
2.5% per annum will accrue on the Class A-2 Notes. - The “Anticipated Call Date” of all tranches of Notes issued under the Fazoli’s Securitization has been extended from July 2023 to October 2025. If the Notes are not repaid or refinanced by the Anticipated Call Date, additional interest of
1.0% per annum will accrue on each tranche of Notes. - Certain financial covenants tied to debt service coverage ratios or leverage ratios that, if triggered, could cause a “Rapid Amortization Event”, “Cash Flow Sweeping Event” or “Event of Default” under the Fazoli’s Securitization have been relaxed or deferred to dates in 2026.
- The bond indenture has been amended to allow sales of company restaurants to franchisees for conversion to franchised restaurants, permitting the Company to refranchise all or a portion of its corporate-owned Fazoli’s restaurants.
Andy Wiederhorn, Chairman of FAT Brands, said, “We are pleased to announce the successful amendment of the Fazoli’s credit facility, resulting in improved terms that enhance our financial flexibility. The amended terms have extended both the call date and repayment date while relaxing certain covenants, providing us with greater operational flexibility for Fazoli’s. Importantly, the new agreement also permits the disposition of corporate stores to franchisees, which would allow for the refranchising of the 57 corporate owned Fazoli’s restaurants. These amendments reflect the strong partnership we have built with our lenders and their continued confidence in our business.”
For more information on FAT Brands, please visit www.fatbrands.com.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial performance of the Fazoli’s and Native Grill & Wings brands and their securitization financing. Forward-looking statements reflect expectations of FAT Brands Inc. (“we” or “our”) concerning the future and are subject to significant business, economic and competitive risks, uncertainties and contingencies. These factors are difficult to predict and beyond our control, and could cause actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other factors. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.
MEDIA CONTACT:
Erin Mandzik
emandzik@fatbrands.com
860-212-6509
