B. Riley Financial reduces debt by $12 million in bond exchange

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services firm with a market capitalization of $94.54 million and total debt of $2.21 billion, has announced a significant reduction in its total outstanding debt through a privately negotiated exchange agreement with an institutional investor. The agreement, which involves exchanging $22 million in outstanding Senior Notes for $10 million in newly issued 8.00% Senior Secured Second Lien Notes due on January 1, 2028, will decrease the company's debt by approximately $12 million. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.17, indicating its ability to meet short-term obligations.

The transaction also includes the issuance of warrants for about 40,000 common shares at a price of $10.00 per share, exercisable over the next seven years. This exchange represents a strategic move by B. Riley Financial to bolster its capital structure, as stated by Bryant Riley, Chairman and Co-Chief Executive Officer of the company.

B. Riley Financial has engaged Moelis & Company LLC as financial advisor and Sullivan & Cromwell LLP as legal advisor in relation to the exchange agreement. The company emphasizes that the press release is not an offer to sell or a solicitation to buy any securities.

The company's approach to managing its financial structure is part of a broader strategy to provide collaborative solutions for clients at every stage of the business life cycle, leveraging its cross-platform expertise. InvestingPro analysis reveals the company has maintained dividend payments for 11 consecutive years, though recent market challenges have impacted its stock price, which has declined by 85.62% over the past year. The firm offers a wide range of services including investment banking, institutional brokerage, and investment management, among others.

This news is based on a press release statement and includes forward-looking statements subject to risks, uncertainties, and assumptions. For deeper insights into B. Riley Financial's valuation and prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, which are available for over 1,400 US stocks. B. Riley Financial cautions readers not to place undue reliance on these statements, which are only valid as of today. The company has a history of filing periodic reports with the SEC, which detail risk factors and management's discussion and analysis of financial condition and results of operations that could influence the company's future performance.

In other recent news, B. Riley Financial has faced several developments. The company reported preliminary Q4 2024 results with net income ranging from $48 million to $68 million and diluted net income per share between $1.57 and $2.22. However, it also reported a net loss from continuing operations of $178 million to $187 million. Additionally, B. Riley Financial received a delinquency notification from Nasdaq due to a delayed annual report submission, which the company plans to address by June 2, 2025.

In a strategic financial move, B. Riley Financial completed a private exchange transaction, reducing its total outstanding debt by approximately $35 million. This involved issuing $87.7 million in new 8.00% Senior Secured Second Lien Notes due 2028, replacing $123 million of existing senior notes. Furthermore, the company issued warrants for 351,012 shares of common stock at an exercise price of $10.00 per share.

B. Riley Financial's transaction was advised by Moelis & Company LLC and Sullivan & Cromwell LLP, while Seaport Global Securities LLC advised the institutional investor. These developments are part of B. Riley's efforts to optimize its capital structure and manage long-term debt obligations. The company is also working to finalize its financial statements and aims to file its annual report as soon as practical.

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