B. Riley Financial to Cut Debt by $12 Million Via Bond Exchange Deal
B. Riley Financial announced an exchange agreement with an institutional investor to reduce its debt by approximately $12 million. The deal involves exchanging about $22 million in senior notes for $10 million in new 8% senior secured second lien notes due January 1, 2028. Additionally, the company will issue warrants for 40,000 common shares at an exercise price of $10 per share, exercisable for seven years. Following the announcement, B. Riley Financial's shares fell over 4%.
B. Riley Financial said Monday it entered into an exchange agreement with an institutional investor that will reduce its outstanding debt by about $12 million.
The investor agreed to exchange roughly $22 million in outstanding senior notes for $10 million in newly issued 8% senior secured second lien notes due Jan. 1, 2028, the company said.
B. Riley will also issue warrants to purchase 40,000 common shares at an exercise price of $10 per share. The warrants will be exercisable for seven years from the date of issuance, the company added.
Shares of B. Riley Financial were down more than 4% in recent trading.
