B. Riley Financial Reduces Debt by Approximately $15 Million Via Private Bond Exchange

Published: 2025-07-01 13:36:50 ET RILY

Published on 07/01/2025 at 13:36

B. Riley Financial, Inc. announced it has entered into a privately negotiated exchange agreement (the "Agreement") with an institutional investor, which will reduce the Company's total outstanding debt by approximately $15 million. Pursuant to the Agreement and subject to the completion of certain closing procedures, the investor has agreed to exchange approximately $28 million in outstanding Senior Notes, consisting of $8 million in December 2026 notes, $2 million in January 2028 notes, and $18 million in August 2028 notes, for $13 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028 (the "Notes"). In addition, the Company is issuing to the investor warrants to purchase an aggregate of approximately 52,000 common shares at an exercise price of $10.00 per share.

The warrants are exercisable for a period of seven years from the issuance date. After the exchange, the balance and remaining capacity of the Notes are approximately $204 million and $46 million, respectively.