B. Riley Shares Rise After Agreeing to Reduce Debt

Dow Jones
03-26
 

By Katherine Hamilton

 

Shares of B. Riley Financial were higher after it agreed with an institutional investor to reduce its debt by $35 million.

Shares ticked up 8% to $4.38 in midday trading. The stock has lost 77% of its value over the past 12 months.

The Los Angeles financial services company said Wednesday an investor has agreed to exchange about $123 million in outstanding senior notes due in 2026 for $88 million in newly issued senior-secured second-lien notes due in January 2028.

B. Riley plans to issue the investor warrants to purchase an aggregate of 351,000 common shares at $10 a share. The warrants are exercisable for a period of seven years from when they are issued.

"This exchange represents an important incremental step in addressing our capital structure," co-Chief Executive Bryant Riley said.

B. Riley has been struggling financially as its share value sank nearly 100% over the past three years. Franchise Group, the holding company for the Vitamin Shoppe--which B. Riley was heavily invested in--filed for chapter 11 bankruptcy in November 2024.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

March 26, 2025 11:40 ET (15:40 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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