B Riley Strikes Deal with Private Investor
B. Riley Financial, Inc. (NASDAQ: RILY) began Monday fairly flat. The Los Angeles-based Riley, a diversified financial services company, today announced it has entered into a privately negotiated exchange agreement with an institutional investor, which will reduce the Company's total outstanding debt by approximately $18 million.
This morning’s news release revealed that, pursuant to the Agreement and subject to the completion of certain closing procedures, the investor has agreed to exchange approximately $43 million in outstanding Senior Notes, consisting of $2 million in September 2026 notes, $20 million in December 2026 notes, $5 million in January 2028 notes, and $16 million in August 2028 notes, for $25 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028.
In addition, the Company is issuing to the investor warrants to purchase an aggregate of approximately 98,000 common shares at an exercise price of $10.00 per share. The warrants are exercisable for a period of seven years from the issuance date.
After the exchange, the Notes balance is $229 million with $21 million of capacity remaining. CEO Bryant Riley said: "This marks the fifth bond exchange BRF has negotiated in four months, reducing total outstanding debt by approximately $126 million. We continue to address our capital structure and expect to utilize the remaining capacity under our Senior Secured Second Lien facility to improve our balance sheet further."
Shares in RILY gained but two cents to $4.32.
