FAT Brands Royalty I, LLC: Rating Report

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the Asset Backed Notes issued by FAT Brands Royalty I, LLC as listed above. FAT Brands Royalty I, LLC is FAT Brand Inc.’s (FAT Brands or the Company) first whole-business securitization. This transaction consists of two classes of notes. The Class A-2 Notes are fixed-rate senior notes. The Class A 2 Notes have an Anticipated Repayment Date in January 2023 and a legal final maturity in April 2026. The B-2 Notes are fixed-rate senior subordinated notes. The Class B-2 Notes have an ARD in October 2023 and a legal final maturity in April 2026. The A-2 and B-2 Notes will receive both scheduled amortization and excess amortization (tied to debt service coverage ratio (DSCR) levels) following a 12-month non-call/IO period. Failure to repay the Notes by their ARD results in 100% of proceeds being trapped for full amortization. The A-2 and B-2 Notes receive additional interest payments after their ARD (Post-ARD Additional Interest). The ratings do not address any payment of Post-ARD Additional Interest.