LOS ANGELES, Sept. 23, 2019 /PRNewswire/ -- B.
Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the
"Company") announced today that it has closed an underwritten
registered public offering of 6.50% Senior Notes due 2026 in an
aggregate principal amount of $115
million, which included $15
million of notes issued pursuant to the full exercise by the
underwriters of their overallotment option. The Company and this
issuance of notes both received an investment grade rating of BBB+
from Egan-Jones Ratings Company, an independent, unaffiliated
rating agency. The notes will be listed on NASDAQ under the symbol
"RILYN" and are expected to begin trading within 30 business days
of the closing date of this offering.
The offering resulted in net proceeds of approximately
$111.4 million after deducting
underwriting discounts and commissions, but before expenses. The
Company expects to use the net proceeds of this offering for the
full redemption of the Company's existing 7.50% Senior Notes due
2021 and for general corporate purposes, including funding future
acquisitions and investments, repaying indebtedness, making capital
expenditures and funding working capital.
B. Riley FBR, Janney Montgomery
Scott, Ladenburg Thalmann and Incapital acted as
book-running managers for this offering. Wedbush Securities,
William Blair and Boenning &
Scattergood acted as co-managers.
The NBD Group acted as legal counsel to the Company.
Duane Morris acted as legal counsel
to the underwriters.
The notes were offered under the Company's shelf registration
statement on Form S-3, which was declared effective by the
Securities and Exchange Commission (SEC). The offering of these
notes was made only by means of a prospectus supplement and
accompanying base prospectus, which was filed with the SEC.
Copies of the prospectus supplement and the accompanying base
prospectus may be obtained on the SEC's website at www.sec.gov, or
from the offices of B. Riley FBR at 1300 North 17th Street, Suite
1400, Arlington, VA 22209, by
calling (703) 312-9580 or by emailing prospectuses@brileyfbr.com.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the notes, nor shall there be any
sale of the notes in any jurisdiction in which such offer,
solicitation or sale would not be permitted.
About B. Riley Financial, Inc. (NASDAQ:RILY)
B. Riley
Financial provides collaborative financial services tailored
to fit the capital raising and business advisory needs of public
and private companies and high-net-worth individuals. B. Riley
operates through several wholly-owned subsidiaries which offer
complementary end-to-end capabilities spanning investment banking
and institutional brokerage, private wealth and investment
management, corporate advisory, restructuring, due diligence,
forensic accounting and litigation support, appraisal and
valuation, and auction and liquidation services. Certain registered
affiliates of B. Riley originate and underwrite senior secured
loans for asset-rich companies. The Company also makes proprietary
investments in companies and assets with attractive return
profiles.
Forward-Looking Statements
Statements in this press
release that are not descriptions of historical facts are
forward-looking statements that are based on management's current
expectations and assumptions and are subject to risks and
uncertainties. If such risks or uncertainties materialize or such
assumptions prove incorrect, our business, operating results,
financial condition and stock price could be materially negatively
affected. You should not place undue reliance on such
forward-looking statements, which are based on the information
currently available to us and speak only as of the date of this
press release. Such forward looking statements include, but are not
limited to, statements regarding the terms and conditions and
timing of the senior notes offering and the intended use of
proceeds. Because these forward-looking statements involve known
and unknown risks and uncertainties, there are important factors
that could cause actual results, events or developments to differ
materially from those expressed or implied by these forward-looking
statements. Factors that could cause actual results to differ
include (without limitation) the possibility that the notes
offering will not be consummated at the expected time, on the
expected terms, or at all; and the Company's financial performance;
and those risks described from time to time in B. Riley Financial,
Inc.'s periodic filings with the SEC, including, without
limitation, the risks described in B. Riley Financial, Inc.'s
Annual Report on Form 10-K for the year ended December 31, 2018 under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations." Additional information is
also set forth in our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2019. These factors
should be considered carefully, and readers are cautioned not to
place undue reliance on such forward-looking statements. All
information is current as of the date this press release is issued,
and B. Riley Financial, Inc. undertakes no duty to update this
information.
Investor Contact
Investor Relations
ir@brileyfin.com
(310) 966-1444
Media Contact
Jo Anne
McCusker
jmccusker@brileyfin.com
(646) 885-5425
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SOURCE B. Riley Financial