B. Riley Financial reduces debt by $15 million through bond exchange

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ:RILY), currently valued at $90.58 million in market capitalization, has entered into a privately negotiated exchange agreement with an institutional investor that will reduce its outstanding debt by approximately $15 million, the company announced Tuesday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.17, though it carries a total debt of $2.2 billion.

Under the agreement, the investor will exchange approximately $28 million in outstanding Senior Notes for $13 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028. The exchanged notes consist of $8 million in December 2026 notes, $2 million in January 2028 notes, and $18 million in August 2028 notes. This debt restructuring comes as the company’s stock has experienced significant pressure, with InvestingPro showing an 83% decline over the past year, though analysis suggests the stock may be slightly undervalued at current levels.

As part of the transaction, B. Riley is also issuing warrants to the investor to purchase approximately 52,000 common shares at an exercise price of $10.00 per share, exercisable for seven years. For deeper insights into B. Riley’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

Following the exchange, the balance of the company’s Senior Secured Second Lien Notes stands at approximately $204 million, with $46 million in remaining capacity.

According to the company, this marks its fourth bond exchange in three months, collectively reducing total outstanding debt by approximately $108 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," said Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial.

Moelis & Company LLC served as financial advisor and Sullivan & Cromwell LLP as legal advisor to B. Riley for the transaction.

The information in this article is based on a press release statement from B. Riley Financial.

In other recent news, B. Riley Financial has announced the sale of its advisory services business, GlassRatner, to funds managed by TorQuest Partners for $117.8 million. The company expects to record a gain of approximately $66 million from this transaction in its second-quarter financial results. Proceeds from the sale will be used to support growth initiatives and strengthen B. Riley’s capital structure. In another significant development, B. Riley Financial has entered into a private bond exchange agreement, reducing its debt by approximately $46 million. This move involves swapping $139 million in outstanding Senior Notes for $93 million in newly issued notes and issuing warrants for approximately 372,000 common shares. Additionally, B. Riley Financial received a Nasdaq compliance extension to meet the exchange’s filing requirements after delays in submitting its Annual Report for 2024 and first-quarter report for 2025. The company is actively working to file the overdue reports by the September 29, 2025 deadline. These recent developments reflect B. Riley Financial’s strategic focus on strengthening its financial position and ensuring compliance with regulatory requirements.

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