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FAT Brands, the parent company of several franchises including Fatburger, Buffalo’s Cafe and Bonanza Steakhouse, is tokenizing a $30-million bond on the Ethereum blockchain.
According to a report by Forbes, FAT Brands CEO Andy Wiederhorn says the company is working with New York-based and Coinbase-backed Cadence, a digital securitization and investment platform for private credit.
According to the notice about the company’s testing phase, issued last month,
“The $30 million deal would be backed by whole-business cashflows consisting mainly of fees paid by franchises operating under the Beverly Hills company’s brands, including Fatburger, Bonanza Steakhouse, Buffalo’s Cafe, Elevation Burger, Hurricane Grill & Wings and Ponderosa Steakhouse.”
[adinserter block="1"]“The assignment would see FAT Brands issue securities via conventional paper contracts, with Cadence then creating digital tokens from those notes.”
Says Wiederhorn,
“Similar to other issuances arranged by Cadence, a digital asset will be created that is a digital reflection of ownership for every investor in the structured notes.”
“The FAT Brands securitization will also be a private credit issuance.”
According to Cadence founder Nelson Chu,
“The format would enable investors to access a higher level of data about the deal, including the identities of other bond holders.”
The security is expected to hit the market by year end.
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