BUZZ-B Riley climbs after report Oaktree in talks to replace Nomura as main lender

Reuters
02/07
BUZZ-B Riley climbs after report Oaktree in talks to replace Nomura as main lender

** Shares of investment bank B. Riley Financial RILY.O rise as much as 6.5%; last up 4.2% at $4.95

** Distressed debt giant Oaktree Capital Management is in talks to replace a group led by Japan's Nomura Holdings 8604.T as the main lender to RILY, Bloomberg reports, citing people familiar with the matter

** RILY is looking for successors to the Nomura-led syndicate as part of a turnaround plan that may see the bank spin off its securities business, the report says

** Bank has been in a tailspin since last year when it suspended its dividend and revealed huge losses tied to Franchise Group bankruptcy, a retailer backed by RILY

** RILY and its co-CEO Bryant Riley have also received subpoenas from the U.S. SEC over the bank's dealings with Franchise's former CEO Brian Kahn

** Bank has sought to fortify its balance sheet and stem the stock rout through divestitures of non-core units

** RILY stock slumped 78.1% in 2024

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))

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