B. Riley Financial Announces Full Redemption of 6.75% Senior Notes due 2024

Rhea-AI Summary

B. Riley Financial, Inc. announced the full redemption of its 6.75% Senior Notes due 2024, totaling $25,000,000, on May 31, 2024. The redemption price includes the aggregate principal amount and accrued interest up to the Redemption Date. The Notes, trading under the ticker symbol 'RILYO' on NASDAQ, will be delisted and cease trading on the Redemption Date.

Insights

Financial Analyst

The redemption of the 6.75% Senior Notes by B. Riley Financial represents a strategic move in managing their debt portfolio, indicating a potential improvement in cash flow management and a reduction of future interest expenses. The redemption at par (100% of the aggregate principal amount) may result in a modest interest saving, as the company is eliminating the future payment of 6.75% interest, which is relatively high in the current interest rate environment. This action may positively influence the company's net interest margin. Investors holding these notes will need to reallocate their capital, which could potentially be directed towards investments with a better yield in the current market. For the stock market, this may signal a company's strong liquidity position, possibly leading to a positive reassessment of its creditworthiness and stock valuation.

Debt Market Analyst

B. Riley Financial's decision to fully redeem their Senior Notes before maturity demonstrates a proactive approach to debt management. The early redemption suggests that the company has sufficient liquidity and a healthy balance sheet. This action might affect the bond market as it reduces the supply of high-yield instruments, potentially driving demand for similar financial products. It is also important to note the implications for bondholders, who will receive capital back and may look for reinvestment opportunities. The redemption could also narrow the spread on the company's remaining debt instruments, indicating a potentially lower risk perception among investors.

LOS ANGELES, May 1, 2024 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company") today announced that it has called for the full redemption equal to $25,000,000 aggregate principal amount of its 6.75% Senior Notes due 2024 (the "Notes") on May 31, 2024 (the "Redemption Date").

The redemption price is equal to 100% of the aggregate principal amount, plus any accrued and unpaid interest up to, but excluding, the Redemption Date, as set forth in each notice of redemption delivered to noteholders on May 1, 2024.

Interest on the Notes will cease to accrue on and after the Redemption Date. The Notes, which are listed on NASDAQ under the ticker symbol "RILYO," will be delisted and cease trading on the Redemption Date.

Investors in the Notes should contact the bank or broker through which they hold a beneficial interest in the Notes for information about the Redemption Payment.

This press release is for informational purposes only and shall not constitute a notice of redemption of the Notes or an offer to purchase, or a solicitation of an offer to sell, any Notes or other securities.

About B. Riley Financial
B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end, collaborative financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.

Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding the terms and conditions and timing of redemption of these Notes. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ include (without limitation) the Company's financial performance; and those risks described from time to time in B. Riley Financial's periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial's Annual Report on Form 10-K for the year ended December 31, 2023 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial undertakes no duty to update this information.

Contact
Investors
Mike Frank
ir@brileyfin.com
(212) 409-2424

Media
Jo Anne McCusker
press@brileyfin.com
(646) 885-5425

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SOURCE B. Riley Financial

FAQ

What is the total amount of the full redemption announced by B. Riley Financial?

B. Riley Financial announced a total redemption of $25,000,000.

When is the Redemption Date for the 6.75% Senior Notes due 2024?

The Redemption Date for the 6.75% Senior Notes due 2024 is on May 31, 2024.

On which stock exchange are the Notes listed under the ticker symbol 'RILYO'?

The Notes are listed on NASDAQ under the ticker symbol 'RILYO'.

What should investors of the Notes do regarding the Redemption Payment?

Investors in the Notes should contact the bank or broker through which they hold a beneficial interest in the Notes for information about the Redemption Payment.