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Bonds

FAT Brands turns to Cadence in $30M Bond Issuance

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Bond Issuance

Investors hungry for profit need look no further than a recently announced bond issuance by FAT Brands restaurant chain, Fat Burger.

Made possible through a partnership with blockchain specialists, Cadence, Fat Burger is looking to tokenize and issue a $30 million bond.

This issuance will see investors afforded the opportunity to earn guaranteed returns on investment, as the bonds essentially represent a loan to Fat Burger.

While the intent of both Fat Burger and Cadence has been confirmed, the details and structuring of the event have not yet been divulged. This includes a variety of details such as repayment schedules, interest rates, terms, etc. What can be confirmed is that the digital issuance will take place on a public Ethereum blockchain, and will coincide with traditional paper-notes being issued as a ‘back-up’.

Commentary

Speaking with Forbes, the CEO of FAT Brands took the time to comment on this decision for a bond issuance.

Andy Wiederhorn, CEO of FAT Brands, states,

“FAT Brands is working with Cadence as the lead arranger to do a whole business securitization…Similar to other issuances arranged by Cadence, a digital asset will be created that is a digital reflection of ownership for every investor in structured notes.”

In his discussion with the news outlet, he continued by explaining the thought process for turning to Cadence and blockchain technologies.

“The digital asset serves as a digital reflection of ownership and provides a level of transparency into the cap table of each structured note…Cadence has already issued 16 different structured notes to date as of the end of August, and so it is likely that investors who have invested in prior Cadence offering will be investing in this offering as well…By issuing this digital asset, Cadence provides a level of transparency into the cap table that has never existed before.”

FatBurger

One of eight restaurant chains owned by FAT Brands, FatBurger operates with over 200 locations throughout the United States.

CEO, Andy Wiederhorn, currently oversees company operations.

Cadence

Founded in 2018, Cadence is a U.S. based company, operating out of New York City. The team behind the project has developed a platform targeting both institutional, and retail, investors. Their success over the past few years has notably resulted in the backing of industry giants such as Coinbase.

Company operations are overseen by Founder, Nelson Chu.

In Other News

The issuance of tokenized bonds is becoming a popular choice for a variety of companies. The following articles demonstrate various instances of big banks dipping their toes in the water, as their growing interest in the process becomes apparent.

Santander Completes Fully Digitized $20M Bond Settlement

World Bank Raises $33.8 Million via Tokenized Bonds

Societe Generale SFH turns to Ethereum for Issuance of Security Token