B. Riley Financial Reduces Debt By $12 Million Through Exchange Agreement With Investor

(RTTNews) - B. Riley Financial, Inc. (RILY) Monday announced a privately negotiated exchange agreement with an institutional investor, reducing the company's outstanding debt by approximately $12 million.

Under the agreement, the investor will exchange $22 million in Senior Notes for $10 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028. Additionally, the company will issue warrants to purchase about 40,000 common shares at $10.00 per share, exercisable for seven years.

Bryant Riley, Chairman and Co-CEO, stated that this exchange is part of their ongoing efforts to strengthen the company's capital structure, and they plan to use the remaining capacity of their Senior Secured Second Lien facility for further balance sheet improvements.

RILY is currently trading at $3.04 or 8.16% lower on the Nasdaq Global Market.