FAT Brands (NASDAQ:FAT), the parent company of restaurant chains Fatburger, Bonanza Steakhouse, Ponderosa Steakhouse, Buffalo’s Cafe, Elevation Burger and Hurricane Grill & Wings, reportedly plans to sell $30 million USD in bonds tokenized on the Ethereum blockchain network.
According to Asset-Backed Alert, FAT Brands is partnering with a token-issuance platform called Cadence. The companies expect the tokens to come available by year end:
“The assignment would see FAT Brands issue securities via conventional paper contracts, with Cadence then creating digital tokens from those notes. The format would enable investors to access a higher level of data about the deal, including the identities of other bondholders.”
Cadence founder Nelson Chu told Asset-Backed that his company handles lead structuring, marketing, syndication, closing and post-settlement, trustee selection and hiring of rating agencies like Morningstar.
Asset-Backed also says that, in the future, “Cadence hopes to complete a securitization that uses blockchain technology throughout, with digital tokens issued from the start instead of paper contracts.”
In October 2017, FAT Brands’ CEO Andy Wiederhorn opened the day at the NASDAQ by ringing the bell in recognition of his company’s embarking on a standard Initial Public Offering (IPO) under the stock ticker FAT.
According to previous reporting at Crowdfund Insider:
“(Thus)FAT becom(es) one of a growing list of issuers leveraging Reg A+ to raise capital from both accredited and non-accredited investors quickly followed by a listing on a public exchange.”
Last month, Wiederhorn stated:
“We are pleased that FAT Brands is one of the first companies to execute a follow-on offering using the Regulation A process. This preferred stock offering brings new, long-term, lower-cost capital to the Company while providing an 8.25% dividend to investors. Eliminating existing debt and using additional proceeds for our next acquisition will further the execution of our business plan and growth strategy.”
The offering has been qualified and investors may now invest at banq.co