B. Riley amends credit facility with Oaktree, gains operational flexibility

Published 09/07/2025, 12:06
B. Riley amends credit facility with Oaktree, gains operational flexibility

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ:RILY) announced Wednesday it has amended its senior secured credit agreement with funds managed by Oaktree Capital Management, L.P., reducing the outstanding balance to $62.5 million while gaining additional operational flexibility. The company, which maintains a healthy current ratio of 4.17, has seen its stock recover recently with a 21% gain over the past week, according to InvestingPro data.

The amendment provides B. Riley with several expanded capabilities, including a new $100 million investment basket to facilitate transactions using the company’s balance sheet, an increase in the parent company investment basket from $20 million to $30 million, and the ability to deploy up to $25 million in cash to reduce other indebtedness. Despite recent challenges, including a net loss in the last twelve months, the company maintains a significant 51% dividend yield. InvestingPro subscribers can access 8 additional key insights about B. Riley’s financial health and future prospects.

"We appreciate our relationship with Oaktree and the enhanced opportunities this amendment affords us," said Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley.

The initial credit agreement was established in February 2025 and was used to retire outstanding debt under B. Riley’s Nomura Senior Secured Credit Agreement and fund working capital. The company noted that the Term Loan Facility does not allow for incremental borrowings.

No other material terms of the Term Loan Facility have been amended, according to the press release statement.

B. Riley Financial is a diversified financial services company that provides investment banking, institutional brokerage, private wealth management, financial consulting, corporate restructuring, and various other financial services through its subsidiaries and affiliated entities. For a comprehensive analysis of B. Riley’s valuation and financial metrics, including exclusive Fair Value calculations and expert insights, explore the detailed Pro Research Report available on InvestingPro.

In other recent news, B. Riley Financial has announced the sale of its advisory services business, GlassRatner, to TorQuest Partners for $117.8 million. This transaction is expected to result in a gain of approximately $66 million, which will be reflected in the company’s second-quarter financial results. The sale is part of B. Riley’s strategy to focus on its core businesses, such as its middle-market investment bank and B. Riley Wealth Management. Additionally, B. Riley Financial has entered into a bond exchange agreement, reducing its outstanding debt by approximately $15 million. This marks the company’s fourth bond exchange in three months, collectively decreasing its total outstanding debt by about $108 million. Furthermore, B. Riley Financial has received an extension from Nasdaq to meet filing requirements after delays in submitting its 2024 Annual Report and first-quarter report for 2025. The company has until September 29, 2025, to file all overdue reports and return to compliance. B. Riley Financial is actively working to complete these filings and anticipates resuming regular schedules by fall 2025. These developments reflect B. Riley’s ongoing efforts to strengthen its financial position and capital structure.

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