B. Riley Financial Announces Private Bond Exchange to Reduce Debt by Approximately $12 Million
B. Riley Financial (NASDAQ: RILY) has announced a private bond exchange agreement with an institutional investor that will reduce its total outstanding debt by approximately $12 million. The agreement involves exchanging approximately $22 million in outstanding Senior Notes for $10 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028.
As part of the transaction, the company will issue warrants to purchase approximately 40,000 common shares at an exercise price of $10.00 per share, exercisable for seven years from the issuance date. This represents the company's second exchange as part of its ongoing efforts to strengthen its capital structure.
B. Riley Financial (NASDAQ: RILY) ha annunciato un accordo di scambio di obbligazioni private con un investitore istituzionale che ridurrà il suo debito totale in circolazione di circa 12 milioni di dollari. L'accordo prevede lo scambio di circa 22 milioni di dollari in Obbligazioni Senior in circolazione per 10 milioni di dollari in nuove Obbligazioni Senior Garantite di Secondo Grado con tasso dell'8,00% in scadenza il 1 gennaio 2028.
Come parte della transazione, l'azienda emetterà warrant per acquistare circa 40.000 azioni ordinarie a un prezzo di esercizio di 10,00 dollari per azione, esercitabili per sette anni dalla data di emissione. Questo rappresenta il secondo scambio dell'azienda nell'ambito dei suoi sforzi continui per rafforzare la sua struttura di capitale.
B. Riley Financial (NASDAQ: RILY) ha anunciado un acuerdo de intercambio de bonos privados con un inversor institucional que reducirá su deuda total pendiente en aproximadamente 12 millones de dólares. El acuerdo implica el intercambio de aproximadamente 22 millones de dólares en Notas Senior pendientes por 10 millones de dólares en nuevas Notas Senior Garantizadas de Segundo Grado al 8.00% que vencen el 1 de enero de 2028.
Como parte de la transacción, la empresa emitirá warrants para comprar aproximadamente 40,000 acciones ordinarias a un precio de ejercicio de 10.00 dólares por acción, que podrán ejercerse durante siete años a partir de la fecha de emisión. Esto representa el segundo intercambio de la empresa como parte de sus esfuerzos continuos para fortalecer su estructura de capital.
B. Riley Financial (NASDAQ: RILY)는 총 미지급 부채를 약 1,200만 달러 줄이는 기관 투자자와의 사모 채권 교환 계약을 발표했습니다. 이 계약은 약 2,200만 달러의 미지급 선순위 채권을 1,000만 달러의 새로 발행된 8.00% 선순위 담보 제2순위 채권으로 교환하는 내용을 포함합니다. 이 채권은 2028년 1월 1일에 만기가 됩니다.
거래의 일환으로 회사는 약 40,000주의 보통주를 주당 10.00달러의 행사 가격으로 구매할 수 있는 워런트를 발행할 것입니다. 이 워런트는 발행일로부터 7년 동안 행사할 수 있습니다. 이는 회사가 자본 구조를 강화하기 위한 지속적인 노력의 일환으로 진행하는 두 번째 교환을 나타냅니다.
B. Riley Financial (NASDAQ: RILY) a annoncé un accord d'échange d'obligations privées avec un investisseur institutionnel qui réduira sa dette totale en circulation d'environ 12 millions de dollars. L'accord implique l'échange d'environ 22 millions de dollars d'Obligations Senior en circulation contre 10 millions de dollars de nouvelles Obligations Senior Sécurisées de Deuxième Rang à 8,00%, arrivant à échéance le 1er janvier 2028.
Dans le cadre de la transaction, la société émettra des bons de souscription pour acheter environ 40 000 actions ordinaires à un prix d'exercice de 10,00 dollars par action, exerçables pendant sept ans à partir de la date d'émission. Cela représente le deuxième échange de la société dans le cadre de ses efforts continus pour renforcer sa structure de capital.
B. Riley Financial (NASDAQ: RILY) hat eine private Anleihe-Tauschvereinbarung mit einem institutionellen Investor angekündigt, die die ausstehende Gesamtverschuldung um etwa 12 Millionen US-Dollar reduzieren wird. Die Vereinbarung umfasst den Austausch von etwa 22 Millionen US-Dollar an ausstehenden Senior Notes gegen 10 Millionen US-Dollar an neu ausgegebenen 8,00% Senior Secured Second Lien Notes, die am 1. Januar 2028 fällig sind.
Im Rahmen der Transaktion wird das Unternehmen Warrants ausgeben, um etwa 40.000 Stammaktien zu einem Ausübungspreis von 10,00 US-Dollar pro Aktie zu erwerben, die sieben Jahre ab dem Ausgabedatum ausgeübt werden können. Dies stellt den zweiten Tausch des Unternehmens im Rahmen seiner fortlaufenden Bemühungen dar, seine Kapitalstruktur zu stärken.
- Debt reduction of $12 million improves balance sheet
- Successful execution of second exchange agreement shows continued progress in capital structure improvement
- New notes are secured by second lien, providing better debt structure
- Potential dilution from 40,000 warrant shares at $10.00 exercise price
- New notes carry 8.00% interest rate, representing ongoing interest expense
- Company still seeking additional transactions to improve balance sheet, indicating continued financial restructuring needs
Pursuant to the Agreement and subject to the completion of certain closing procedures, the investor has agreed to exchange approximately
Bryant Riley, Chairman and Co-Chief Executive Officer of BRF, said: "This second exchange is another step forward as we work to strengthen our capital structure. We will continue to utilize the remaining capacity under our Senior Secured Second Lien facility to conduct additional transactions to improve our balance sheet."
Moelis & Company LLC acted as financial advisor and Sullivan & Cromwell LLP acted as legal advisor to BRF with respect to the Agreement.
No Offer or Solicitation
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall it constitute an offer to sell, solicitation or sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
About B. Riley Financial
B. Riley Financial (BRF) is a diversified financial services company that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. BRF leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its subsidiaries and affiliated entities, BRF provides end-to-end 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. BRF opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. BRF 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 made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. 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 today's date. All statements other than statements of historical fact are forward-looking statements and include the completion of the closing procedures related to the exchange. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company's periodic filings with the SEC, including, without limitation, the risks described in the Company's 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). 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 the Company undertakes no duty to update this information.
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SOURCE B. Riley Financial
FAQ
How much debt reduction will B. Riley Financial (RILY) achieve through the April 2025 bond exchange?
What are the terms of RILY's newly issued Senior Secured Second Lien Notes in the 2025 exchange?
What warrant terms are included in RILY's April 2025 bond exchange agreement?
How much existing Senior Notes are being exchanged in RILY's April 2025 debt restructuring?
