On October 1, 2021, FAT Brands Inc. completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, FAT Brands Twin Peaks I, LLC, of an aggregate principal amount of $250,000,000 of Series 2021-1 Fixed Rate Secured Notes. The net proceeds from the sale of the Notes were used by the Company to finance the cash portion of the purchase price for the acquisition of Twin Peaks Buyer, LLC and its direct and indirect subsidiaries in a transaction that was completed on the Closing Date, as discussed further below under Item 2.01. The Notes were offered and sold to qualified institutional buyers through Jefferies LLC, as the initial purchaser, pursuant to the exemptions from registration provided by Rule 144A under the Securities Act of 1933, as amended, and outside of the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. The Notes were issued pursuant to a Base Indenture, dated as of the Closing Date, as amended by the Series 2021-1 Supplement, dated as of the Closing Date, each of which is by and among the Issuer and UMB Bank, N.A., as trustee and as securities intermediary. The Notes were issued in three tranches: (i) 7.00% Series 2021-1 Fixed Rate Senior Secured Notes, Class A-2, in an initial principal amount of $150,000,000; (ii) 9.00% Series 2021-1 Fixed Rate Senior Subordinated Secured Notes, Class B-2, in an initial principal amount of $50,000,000; and (iii) 10.00% Series 2021-1 Fixed Rate Subordinated Secured Notes, Class M-2, in an initial principal amount of $50,000,000. Scheduled payments of principal and interest on the Notes are required to be made on a quarterly basis, in each case from amounts that are available for payment thereon under the Base Indenture. The legal final maturity of the Notes is July 25, 2051, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Notes will be repaid on July 25, 2023 (the “Anticipated Call Date”). If the Issuer has not repaid or refinanced the Notes by the Anticipated Call Date, additional interest equal to 1.0% per annum will accrue on each tranche of Notes. If the Issuer has not repaid or refinanced the Class A-2 Notes by the Series 2021-1 Class A-2 Anticipated Repayment Date (as defined in the Series 2021-1 Supplement), additional interest equal to 2.5% per annum will accrue on the Class A-2 Notes.