B. Riley Financial Inc. has announced a significant debt transaction aimed at reducing its outstanding debt by approximately $46 million. The company has entered into a privately negotiated exchange agreement with an institutional investor, which will result in the exchange of about $139 million in senior notes for $93 million in new 8.00% Senior Secured Second Lien Notes due January 1, 2028. This transaction eliminates over $100 million in 2026 maturities, marking a substantial step in improving the company's capital structure. Additionally, B. Riley is issuing warrants to the investor for approximately 372,000 common shares at an exercise price of $10.00 per share, exercisable over seven years. Moelis & Company LLC served as financial advisor, and Sullivan & Cromwell LLP provided legal advice for the agreement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.