B. Riley Financial's Strategic Debt Reduction Initiative
On July 14, 2025, B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services firm, announced a significant reduction of its outstanding debt by approximately $18 million. This achievement comes as a result of a privately negotiated exchange agreement with an institutional investor, reflecting the company's proactive approach in managing its capital structure.
The Exchange Agreement
The recent agreement stipulates that the investor will exchange roughly $43 million worth of senior notes, which includes amounts of $2 million due in September 2026, $20 million due in December 2026, $5 million due in January 2028, and $16 million due in August 2028. In return, the investor will receive $25 million in newly issued 8.00% Senior Secured Second Lien Notes, set to mature on January 1, 2028.
Additionally, B. Riley Financial is issuing approximately 98,000 common share purchase warrants at an exercise price of $10.00 per share, valid for seven years from the date of issuance. This structured arrangement not only lowers the company’s debt but also potentially creates future capital opportunities through equity.
Post-exchange, the total balance of the newly issued notes stands at $229 million, with an available capacity of $21 million remaining. This transaction is part of the company's larger strategy to fortify its balance sheet and improve its financial standing.
Leadership Insights
Bryant Riley, Chairman and Co-CEO of B. Riley Financial, expressed satisfaction with the transaction, stating, "This marks the fifth bond exchange BRF has negotiated in four months, reducing total outstanding debt by approximately $126 million. We continue to address our capital structure and expect to utilize the remaining capacity under our Senior Secured Second Lien facility to improve our balance sheet further."
This proactive approach demonstrates the company’s commitment to enhancing its financial health and presenting a solid operational front.
About B. Riley Financial
B. Riley Financial is a diversified financial services company offering tailored solutions to meet the strategic, operational, and capital needs of its clients. Through various subsidiaries and affiliated entities, the firm provides comprehensive financial services that include investment banking, brokerage, private wealth management, financial consulting, corporate restructuring, and more.
With a business model designed to leverage cross-platform expertise, B. Riley Financial aims to deliver collaborative solutions at every stage of the business lifecycle while pursuing strategic investments that benefit its shareholders.
For more insights into the company and its offerings, visit
www.brileyfin.com.
Conclusion
As of July 2025, B. Riley Financial's strategic move to reduce its debt underlines its commitment to achieving long-term financial stability. Through effective negotiation and a focus on both debt and equity management, the company positions itself to remain competitive in an ever-evolving financial landscape.