B. Riley Shares Bumped Up by Deal to Cut Debt Load

Dow Jones
May 22, 2025
 

By Dean Seal

 

Shares of B. Riley Financial advanced after the company said it reached a deal to cut its outstanding debt by about $46 million.

The stock advanced 4.6% to $3.42 in the morning session.

The financial services company said before the bell that it has entered into an agreement with an institutional investor to exchange about $139 million in senior notes due over the next few years for $93 million in notes that have an 8% interest rate and are due Jan. 1, 2028.

B. Riley is also issuing the investor warrants to buy up to 372,000 shares at $10 apiece within the next seven years.

The significant drop in near-term debt is an important step forward for the company, Co-Chief Executive Bryant Riley said.

The shares have fallen more than 96% since they hit a high of $88.86 at the end of 2021. The firm suspended its dividend last August and came under even more pressure after Franchise Group, the holding company for the Vitamin Shoppe that B. Riley was heavily invested in, filed for bankruptcy in November.

The company has been working to reshape its capital structure and has sold a majority of appraisal- and valuations-unit Great American to Oaktree Capital last year as well as part of its traditional W-2 wealth-management business to Stifel Financial.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

May 21, 2025 12:06 ET (16:06 GMT)

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