In pre-market trading, B. Riley Financial, Inc. (NASDAQ: RILY) shares jumped 10.70% to $3.62 after the business announced a major debt restructuring program. The financial services company disclosed a deal with an institutional investor that was privately arranged with the goal of simplifying its capital structure and lowering liabilities.
Note Exchange Reduces Debt by $46 Million
- Riley has reached an exchange agreement whereby the investor will exchange roughly $139 million in outstanding Senior Notes, which include $30 million due in March 2026, $75 million due in December 2026, and $35 million due in January 2028, for $93 million in newly issued 8.00% Senior Secured Second Lien Notes that mature on January 1, 2028.
As a result of this deal, RILY’s overall debt will be reduced by almost $46 million. B. Riley will give the investor warrants to purchase around 372,000 common shares at a strike price of $10.00 per share in order to further encourage the transaction. These warrants will continue to be exercisable for seven years after they are issued.
Enhancing the Balance Sheet
This latest exchange represents B. Riley’s largest to date and marks a crucial step in its broader effort to reduce outstanding debt by a total of $93 million across three recent bond exchanges. By eliminating over $100 million in 2026 maturities, the firm is significantly lowering its near-term financial obligations.
RILY stated that it will keep looking for ways to strengthen its balance sheet by making use of its remaining capacity under the Senior Secured Second Lien loan.
Change in Leadership at the Financial Helm
Riley said in a different statement that Scott Yessner would take over as Chief Financial Officer on June 3, 2025. Yessner has served as RILY’s strategic adviser and had extensive experience in corporate change.
He has held CFO positions at Universal Technical Institute and California Expanded Metal Products Company (CEMCO), where he supervised significant financial turnarounds. Additionally, he held top financial positions at Wells Fargo Advisors and MUFG Union Bank.
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