#United States #Los Angeles #Senior Notes #Financial Services #B. Riley

B. Riley Financial Completes Full Redemption of Senior Notes

Introduction

B. Riley Financial, Inc. (NASDAQ: RILY) has made headlines with its recent decision regarding the 6.375% Senior Notes that are set to mature on February 28, 2025. In a strategic move aimed at enhancing its capital structure, the company announced on January 21, 2025, its plans for a full redemption of all issued and outstanding notes.

Redemption Details

According to the company's announcement, the redemption will occur on the established Redemption Date of February 28, 2025. Investors holding the notes will receive a redemption price equivalent to 100% of the aggregate principal amount along with any accrued and unpaid interest as outlined in the redemption notice. Following this date, interest on the notes will cease to accrue.

It is noteworthy that these Senior Notes, identified under NASDAQ ticker RILYM, will be delisted from the exchange and will no longer be tradeable after the redemption date. The company emphasizes that it will notify the note holders on or before January 24, 2025, providing essential information regarding the redemption payment.

Financial Overview

B. Riley also used this opportunity to provide clarity on its current financial standing. As of December 31, 2024, it reported a preliminary cash balance of $257 million. This figure includes the reserves allocated for the upcoming redemption of the Senior Notes.

While the redemption is a significant move, B. Riley has also taken measures to suspend cash dividends on its Series A and Series B Cumulative Perpetual Preferred Stocks, pending full payment of any arrears. This decision reflects the company's commitment to manage its cash flow judiciously while navigating its capital expenditures and obligations.

Management's Perspective

Bryant Riley, Chairman and Co-CEO of B. Riley Financial, shared insights on the board's ongoing efforts to amplify the company’s financial position. He mentioned that management continues to explore various opportunities to optimize capital structure and strategically invest in core financial service offerings.

Looking Ahead

The announcement comes alongside indications that B. Riley plans to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, with the SEC in the near future. Investors and stakeholders can anticipate a broader update during the subsequent investor call, where the management team aims to shed light on future directions and updates on financial performance.

Conclusion

In conclusion, B. Riley Financial is taking deliberate steps towards enhancing its financial health by redeeming its Senior Notes ahead of schedule. The upcoming actions signify a proactive approach in managing their financial obligations, while also potentially setting the stage for future growth and stability in the competitive landscape of diversified financial services.

For more information about B. Riley Financial and their service offerings, visit www.brileyfin.com.