Morningstar Rating: Ethereum Security Ranked First For $39 Million Fatburger Deal

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Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • The CEO of the company Andrew Wiederhorn after this huge figure commented that it will be a metamorphic event for Fat Brands.
  • By DBRS a sum of $20 million worth Class A notes was rated BB and another $1907 million notes were rated as B.
  • As a factor in the rating, Wiederhorn gives credit to the tokens issued on the ethereum blockchain.

An American fast restaurant chain Fatburger ranks the first time by the investment rating giant DBRS Morningstar that rated Fatburger to a historic $39.7 million capital infusion which involved securities issued on ethereum.

Investment in Fatburger’s parent company Fat Brands is not vast in terms of total dollars. The firm carries several more projects under pipeline, targeting to raise a sum of $500 million by the end of 2020.

It is estimated to be $117 trillion in a total debt securities market.

What does the founder say?

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The CEO of the company Andrew Wiederhorn after this huge figure commented that it will be a metamorphic event for Fat Brands. And there will be several smaller franchise companies or restaurant companies which are looking to access the whole business to access capital instead of taking term loans from lenders.

About the rating

By DBRS a sum of $20 million worth Class A notes was rated BB and another $1907 million notes were rated as B.

The average 7.75% fixed rate notes are supported by royalties and primary upfront fees are charged to Fat Brands franchisees, including Buffalo’s wings, Fatburger, and Ponderosa Steakhouse.

According to the rating a total of 400 stores are contracted to pay these fees with 200 more planned to open. As said by Wiederhorn, $25 million of the debt security will be used for refinancing the present debt at a certain rate.

This will save the company’s $2 million yearly with the outstanding funds will be used to acquire additional restaurant brands in the second quarter of the current year.

As a factor in the rating, Wiederhorn gives credit to the tokens issued on the ethereum blockchain.

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