Percent Acts As Joint Bookrunner On $144 Million Whole Business Securitization for FAT Brands Inc.

Rhea-AI Summary

On April 26, 2021, Percent announced the closure of a $144 million whole business securitization for FAT Brands Inc. (NASDAQ: FAT), marking their third such offering within thirteen months. This transaction refinances previous $40 million securitizations from 2020, reducing FAT's marginal cost of capital to 5.92%. The proceeds will support FAT's acquisition growth strategy, particularly following its acquisition of Johnny Rockets. Percent has established a strong relationship with FAT, enabling access to institutional ABS markets.

Positive

• Successfully closed $144 million whole business securitization, enhancing liquidity.
• Refinances previous $40 million transactions, reducing marginal cost of capital to 5.92%.
• Proceeds will support acquisition strategy, indicating growth potential.

Negative

• None.

NEW YORK, April 26, 2021 /PRNewswire/ -- Percent, the leading private investing platform, is pleased to announce the closing of a $144 million whole business securitization for FAT Brands Inc. (NASDAQ: FAT), in which Percent, through its institutional arm Cadence Securities, LLC, acted as joint bookrunner.

This offering, the third of its kind between FAT Brands and Percent in thirteen months, follows FAT's $40 million whole business securitization in March of 2020, as well as a second $40 million transaction in September of the same year. Percent served as the sole structuring agent for these previous transactions and worked closely with Jefferies LLC on the platform's largest transaction to date.

"It was a pleasure working on this financing milestone for FAT Brands as they continue to scale and are poised to thrive in a post-pandemic environment," says Prath Reddy, Percent's President. "We look forward to following a similar playbook with other first-time issuers seeking to dramatically reduce their cost of capital from the institutional structured credit markets."

The closure of this third note refinances two FAT Brands securitization transactions from 2020, ultimately lowering the company's marginal cost of capital to 5.92%. After acquiring Johnny Rockets between their first two whole business securitizations, FAT aims to use proceeds of the transaction to bolster FAT's acquisition growth strategy. This note also further validates Percent's ability to bring first-time issuers to the institutional markets and support their growth with investors who understand and value the benefits of becoming capital partners to high growth companies.

"We've been impressed with the Percent team since engaging them on our inaugural whole business securitization early last year," says Andy Wiederhorn, President and CEO of FAT Brands. "Establishing access to the institutional ABS market has been a key strategic focus of ours and we can now confidently continue executing on our acquisition growth strategy."

Founded in 2018 as Cadence, the premier private credit investment platform, Percent brought a unique fixed income investment product to individual and institutional investors. Today, Percent has over $550 million in investments structured and issued across its investor platforms, with more than 200 deals closed and over $11 million in interest disbursed to investors.

About Percent

Percent (formerly Cadence) is a leading technology platform enabling investors, issuers and underwriters unparalleled access to once opaque asset classes in private capital markets. Founded in 2018, Percent is creating the first ever efficient market for private credit, facilitating a higher velocity of transactions at a fraction of the cost. Their platform has been used to analyze billions in assets and issue over $550 million of private credit transactions across both unrated and rated offerings. The company is headquartered in New York with a presence in Boston and Austin, and is backed by White Star Capital, B Capital, Revel Partners, Morgan Creek, Nimble Ventures, and Tuesday Capital.

Press Kit: https://www.dropbox.com/sh/05kawnimz7qdih8/AABKuQZv5WCOATlqe713HRcha?dl=0

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SOURCE Percent

FAQ

What is the recent securitization amount for FAT Brands?

FAT Brands recently closed a whole business securitization amounting to $144 million.

How has FAT Brands' cost of capital changed?

The closure of the recent securitization reduced FAT Brands' marginal cost of capital to 5.92%.

What will FAT Brands use the proceeds from the securitization for?

FAT Brands will use the proceeds to bolster its acquisition growth strategy.

How many securitizations has FAT Brands completed with Percent?

FAT Brands has completed three securitizations with Percent in the past thirteen months.