FAT Brands Announces Refinancing of Twin Peaks Credit Facility
18 November 2024 - 12:00PM
FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a
leading global franchising company and parent company of 18 iconic
brands, is pleased to announce that Twin Hospitality Group Inc.,
the operating unit for its Twin Peaks and Smokey Bones restaurant
brands, has priced the issuance of new notes to refinance its whole
business securitization credit facility originated in October 2021.
The aggregate principal balance of the new Series 2024-1 fixed rate
notes (the “Notes”) is $416,711,000 across four tranches, with a
weighted average interest rate of 9.5% per annum. The issuer of the
Notes will be Twin Hospitality I, LLC, a wholly-owned subsidiary of
Twin Hospitality Group Inc.
Closing Date |
Class |
Seniority |
Principal Balance |
Coupon |
Anticipated Repayment Date |
Final Legal Maturity Date |
11/21/2024 |
A-2-I |
Super Senior |
$ |
12,124,000 |
9.00 |
% |
10/25/2027 |
10/26/2054 |
11/21/2024 |
A-2-II |
Senior |
$ |
269,257,000 |
9.00 |
% |
10/25/2027 |
10/26/2054 |
11/21/2024 |
B-2 |
Senior Subordinated |
$ |
57,619,000 |
10.00 |
% |
10/25/2027 |
10/26/2054 |
11/21/2024 |
M-2 |
Subordinated |
$ |
77,711,000 |
11.00 |
% |
10/25/2027 |
10/26/2054 |
|
|
|
|
|
|
|
|
|
The Notes may be exchanged for a proportionate
interest in Exchangeable Notes in two tranches, referred to as
Class A2IIB2 (up to $326,876,000) and Class A2IIB2M2 (up to
$404,587,000), which reflect in the aggregate the characteristics
of the corresponding exchanged Notes.
Ken Kuick, Co-CEO of FAT Brands, said, “We
are pleased to announce the successful pricing of the TWNP Series
2024-1 whole business securitization notes. This financing
stabilizes Twin Peaks’ financial structure and represents a key
milestone as we work toward the goal of creating a standalone
public company.”
Kuick continued, “Additionally, the refinancing
allows us to further drive the growth of Twin Peaks, our
fastest-growing concept. Twin Peaks’ compelling unit economics
continue to fuel strong demand from both existing and potential
franchisees seeking new locations. Year to date, we have opened
nine new lodges bringing our total to 115 Twin Peaks
locations.”
Jefferies LLC acted as sole structuring agent
and sole bookrunner for this transaction. Legal advisors were
Katten Muchin Rosenman LLP for FAT Brands Inc., and King &
Spalding LLP for Jefferies LLC.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the Notes or any
other security. The Notes have not been, and will not be,
registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act
of 1933.
About FAT (Fresh. Authentic. Tasty.)
BrandsFAT 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.
About Twin PeaksFounded in 2005
in the Dallas suburb of Lewisville, Twin Peaks franchises and owns
115 restaurants in the United States and Mexico. Twin Peaks is the
ultimate sports lodge featuring made-from-scratch food and the
coldest beer in the business, surrounded by scenic views and
wall-to-wall TVs. For more information, visit
twinpeaksrestaurant.com.
Forward Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to significant business,
economic and competitive risks, uncertainties and contingencies,
many of which are difficult to predict and beyond our control,
which could cause our actual results, including consummation and
benefits of the potential transaction discussed in this press
release, to differ materially from the results expressed or implied
in such forward-looking statements. We refer you to the Form 10
Registration Statement filed by Twin Hospitality Group Inc., and
the documents filed by FAT Brands Inc. from time to time with the
SEC, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for
a discussion of these risks, uncertainties and contingencies. We
undertake no obligation to update any forward-looking statement to
reflect events or circumstances occurring after the date of this
press release.
Investor Relations: ICRMichelle
Michalski IR-FATBrands@icrinc.com646-277-1224
Media Relations: FAT Brands
Inc. Erin Mandzik emandzik@fatbrands.com 860-212-6509
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