B. Riley Financial cuts debt by $35 million in bond exchange

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial services, announced today it has reached an agreement to reduce its total outstanding debt by approximately $35 million through a private exchange with an institutional investor. The company, currently trading at $4.05, has seen its stock decline by roughly 77% over the past year. According to InvestingPro analysis, the stock appears fairly valued at current levels.

Under the terms of the agreement, the investor will swap roughly $123 million in outstanding Senior Notes for $88 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028. The Senior Notes being exchanged include about $86 million of 5.5% notes due March 31, 2026, and approximately $37 million of 5.0% notes due December 31, 2026. Furthermore, the company will issue warrants for about 351,000 common shares at an exercise price of $10.00 per share, exercisable over the next seven years. With total debt standing at $2.21 billion and a current ratio of 4.17, InvestingPro data shows the company maintains strong liquidity despite its debt load.

Bryant Riley, Chairman and Co-Chief Executive Officer of the company, expressed that this transaction is a strategic move to improve the company’s capital structure and hinted at the possibility of additional future transactions.

The financial advisory role for B. Riley Financial was filled by Moelis & Company LLC, with Sullivan & Cromwell LLP providing legal advice. Seaport Global Securities LLC advised the institutional investor.

B. Riley Financial has a broad portfolio of services, including investment banking, institutional brokerage, and investment management, and often invests opportunistically to benefit its shareholders. The company’s subsidiaries and affiliates also originate and underwrite senior secured loans for asset-rich companies. Notable for investors, the company maintains a significant dividend yield of 49.38% and has sustained dividend payments for 11 consecutive years, according to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ top US stocks.

This press release does not serve as an offer to sell or a solicitation of an offer to buy any securities. It is also noted that forward-looking statements within the press release are subject to risks and uncertainties and should not be relied upon unduly. The company’s performance may differ materially from expectations due to various risks, as detailed in its periodic filings with the SEC.

This news article is based on a press release statement.

In other recent news, B. Riley Financial has reported preliminary Q4 2024 results, highlighting a net income ranging between $48 million and $68 million, with a diluted net income per share between $1.57 and $2.22. Despite these figures, the company faced a net loss from continuing operations between $178 million and $187 million, primarily due to impairment charges and trading losses. Additionally, B. Riley Financial missed the deadline for filing its annual report for the third consecutive year, citing complexities in finalizing financial statements and the need to assess impairment charges. The company is working to finalize its financials and aims to file the report as soon as practical. In strategic developments, B. Riley Financial has been focusing on asset monetization and debt reduction, including a joint venture with Oaktree Capital Management and the sale of brand assets. The company also announced the sale of a portion of its wealth management business to Stifel Financial Corp. Analysts from Imperial Capital have noted the company’s strategic shifts and ongoing challenges, including its efforts to stabilize its core businesses and manage its debt structure.

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