FAT Brands Reports Redemption of $43.2M Of Series B Shares

FAT Brands Inc FAT reported the redemption of 1.8 million shares of its 8.25% series B cumulative preferred stock from an affiliate of Garnett Station Partners for $43.2 million.
The shares of series B preferred stock were redeemed at a price of $23.69 per share plus accrued and unpaid dividends to the date of redemption.
"The redemption of this Tranche of Series B Preferred Stock will yield significant cash flow savings for FAT Brands as our securitization facility, which funded the transaction, has a lower cost of capital than the effective dividend rate on the redeemed preferred stock," said CEO Andy Wiederhorn.
FAT Brands is a global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world.
Price Action: FAT shares are trading lower by 3.49% at $6.78 on Friday.