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BRC Group Holdings, Inc. Achieves Significant Debt Reduction Through Strategic Transactions

BRC Group Holdings, Inc. (NASDAQ: RILY) has recently taken significant steps to strengthen its financial posture by announcing the retirement of around $37.9 million in outstanding debt. The company executed a series of innovative transactions involving bond-for-equity exchanges and repurchases, a move aimed at enhancing its debt management and overall financial health.

On March 12, 2026, BRC Group Holdings disclosed that these transactions were conducted in collaboration with a long-standing institutional investor, in accordance with Section 3(a)(9) of the Securities Act of 1933. The transactions will culminate in the cancellation of 1,343,551 units of the company’s publicly-traded senior notes, which span multiple series. In exchange for these notes, BRC will issue 4,201,300 shares of its common stock, priced at an average of $7.0933 per share.

In addition to the equity exchange, BRC Group Holdings has repurchased 171,703 units of its 5.0% senior notes, due in 2026, for a total cash payment of approximately $4 million. These strategic maneuvers will render the aforementioned senior notes no longer outstanding once the final transaction is completed, expected on March 13, 2026.

Bryant Riley, Chairman and Co-CEO of BRCGH, commented on these developments, stating, "These senior note transactions, combined with the continuous appreciation in our investment portfolio, have significantly reduced our net debt position. We are committed to employing multiple strategies to further diminish our debt while investing in the company's growth."

BRC Group Holdings plans to redeem its remaining 5.50% Senior Notes set to mature in 2026, which have an aggregate principal amount of approximately $96 million, on March 30, 2026. This proactive approach highlights the company’s commitment to improving its financial structure.

The company has expressed appreciation for the hard work of its team and business partners, who managed to successfully file three Quarterly Reports between November 20, 2025, and January 14, 2026. The swift completion of these filings, coupled with the ongoing annual audit, reflects the resilience and dedication of the BRCGH team, setting the stage for a promising future.

With a new auditor onboard since September 2025, BRC Group Holdings is now preparing for the completion and filing of its 2025 Annual Report. The company has announced a Notification of Late Filing for Form 12b-25, which will automatically extend its deadline for the Annual Report filing by an additional 15 days to March 31, 2026. The timing for its earnings release and earnings call will be disclosed in the upcoming weeks.

While BRC Group Holdings celebrates its debt reduction strides, it also highlights the importance of forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These declarations resonate within the context of the company’s operational expectations, reflecting various risks and uncertainties that may impact future results and performance.

About BRC Group Holdings, Inc.
BRC Group Holdings is a diversified holding company engaged in financial services, telecom, and retail, along with investments across various equity, debt, and venture capital segments. Its financial services platform extends tailored end-to-end solutions to small-cap and mid-market firms. The company's banking division provides capital market services, while its wealth management services include investment management, insurance, and financial planning. Additionally, BRC’s telecom division offers a range of consumer and business services, including internet and data solutions.

For more information, visit BRC Group Holdings.

Conclusion: BRC Group Holdings, Inc. is making noteworthy strides towards financial robustness by strategically reducing its outstanding debt. This journey not only reflects effective management but also sets an optimistic tone for the company’s future endeavors.