FAT Brands Inc. announced a private placement of 5,000 units at $10,000 per unit for gross proceeds of $50,000,000 on January 17, 2018. The units comprise of non-convertible preferred stock and common stock purchase warrants. The transaction will be conducted as a general solicitation private placement solely to accredited investors.

Each unit consists of 100 shares of series A fixed rate/floating rate cumulative preferred stock and three year warrants to purchase 185 shares of common stock at $18 per share. Investors in the transaction will receive quarterly cash dividends at a rate that increases from 8% to 13% per year, plus an additional dividend of 5.6% per year that will cumulate for the first three years and be payable on December 31, 2020. The preferred shares may be redeemed by the company at 110% of liquidation preference plus accrued dividends in the first year after issuance, 105% in the second year after issuance, and 100% thereafter.

The transaction will close on a rolling basis, subject to customary closing conditions, commencing on or about January 31, 2018.