Transaction recorded on Ethereum blockchain
Cadence Group, Inc., a leading fintech securitization platform, is pleased to announce the closing of a $40-million subordinated note for FAT Brands Inc. (NASDAQ: FAT), in which Cadence, through its institutional arm, acted as the sole structuring agent.
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This offering follows FAT’s inaugural $40 million whole business securitization in March, in which Cadence also acted as the sole lead, bringing the entire securitization facility to a total of $80 million. Two institutional investors participated in the offering, with proceeds to primarily fund FAT Brands’ recently announced acquisition of Johnny Rockets, an American restaurant franchise.
“This whole business securitization was designed to support both opportunistic and transformative acquisitions,” said Cadence Head of Capital Markets Prath Reddy, “and we’re thrilled to see this come to fruition with FAT’s swift expansion to acquire such an iconic brand.”
Similar to the ground-breaking March offering, this transaction was also recorded on the Ethereum blockchain. Using ERC-20 tokens, the reflective digital asset provides an added layer of transparency into the number of investors and the movement of cash and securities across the issuer, investors, and the trustee.
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“We are constantly striving to push the industry forward with greater transparency,” Cadence Founder and CEO Nelson Chu said, “and our ability to arrange these transactions enables us to demonstrate just how beneficial and impactful it can be.”
Founded in 2018, Cadence has positioned itself at the forefront of industry trends. Its retail investment platform for accredited investors has seen a surge in growth since going live in July 2019. More than $155 million in notes have been issued across 125+ offerings with 14 originators. To date, the company has returned more than $124 million in principal and paid out over $3 million in interest.
The transaction can be viewed using a blockchain explorer such as Etherscan by searching “FAT Brands 2020-2 M2 Tranche,” as well as through Cadence’s Private Credit Explorer App on the Bloomberg Terminal at {APPS CADENCE < GO >}.
Manatt, Phelps & Phillips, LLP served as legal advisors for Cadence on the transaction, while UMB Bank, N.A. acted as Trustee, Vervent, Inc. as Backup Manager, and Citadel SPV LLC as Control Party.
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