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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