B. Riley Financial Secures $160 Million Debt Financing from Oaktree Capital Management

B. Riley Financial, Inc. (NASDAQ: RILY), a diverse financial services firm, has recently revealed the successful arrangement of a $160 million senior secured debt facility with Oaktree Capital Management, L.P. This strategic financial move signifies a pivotal moment for B. Riley as it continues to adapt and grow its operational capabilities.

The company allocated approximately $118 million to repay previous debts linked to its Nomura Senior Secured Credit Agreement. The remainder will be utilized for working capital and to support its involvement in a joint venture focused on the liquidation of JOANN, a well-known fabric and crafts retailer that will soon commence closing sales across all 790 stores nationwide.

On February 26, 2025, GA Group, which is 44% owned by B. Riley, emerged as the winning bidder to manage JOANN's liquidation process following an auction sanctioned by the U.S. Bankruptcy Court for the District of Delaware. This liquidation, which encompasses nearly $2 billion worth of retail inventory, is poised to be one of the largest transactions in the history of GA Group, expected to conclude in about 12 weeks.

The Chairman and Co-CEO of B. Riley, Bryant Riley, expressed enthusiasm regarding the new credit agreement, emphasizing its importance in extending the firm's relationship with Oaktree and facilitating financial and strategic flexibility. The new three-year facility will enable B. Riley to pursue additional initiatives effectively.

Riley highlighted that participating in the JOANN liquidation illustrates the early accomplishments of their partnership with Oaktree, which also led to the establishment of GA Group—an expert in asset disposition, valuation, and appraisal. This successful bid during a competitive bankruptcy process underscores the potential growth of their collaboration, benefiting B. Riley both as an investor in JOANN's liquidation and through its equity stake in GA Group.

The terms of the $160 million Term Loan Facility include an interest rate equal to the three-month Secured Overnight Financing Rate (SOFR) plus an additional 8%. As part of the agreement, B. Riley issued warrants to Oaktree to purchase a total of 1,832,290 common shares, representing around 6% of the outstanding shares, at an exercise price of $5.14 per share. This is set at a 20% premium based on the 30-day volume-weighted average price preceding the issuance. The warrants will be valid for seven years from the date of issuance.

Additionally, B. Riley plans to announce its preliminary full-year 2024 results on March 3, 2025, after market closure. Following this, the company will conduct a conference call for analysts and investors, providing an opportunity for dialogue regarding future directions and market context.

Legal guidance for B. Riley was provided by Sullivan & Cromwell LLP, while Kirkland & Ellis LLP represented Oaktree in this financial agreement.

About B. Riley Financial
B. Riley Financial delivers a comprehensive suite of tailored solutions aimed at fulfilling the strategic, operational, and capital requirements of its clientele. Leveraging expertise across various platforms, it seeks to offer collaborative solutions throughout the business lifecycle, encompassing investment banking, private wealth management, corporate restructuring, and more. B. Riley also strategically invests to enhance shareholder returns and proactively underwrites secured loans for firms with substantial assets. For more information about their services, visit www.brileyfin.com.

About Oaktree
Oaktree is recognized as a leader in global investment management, particularly in alternative investments, managing $202 billion in assets as of December 31, 2024. The firm prioritizes an opportunistic and value-oriented approach within various investment sectors, employing over 1,200 professionals across 23 global offices. For further details, visit Oaktree's website.