LOS ANGELES, Oct. 2, 2019 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the
"Company") today announced the pricing of its underwritten
registered public offering of 2,000,000 depositary shares at an
initial public offering price of $25.00 per depositary share, raising gross
proceeds of $50 million before
deducting underwriting discounts and other estimated offering
expenses. Each depositary share represents a 1/1000th
fractional interest in a share of the Company's 6.875% Series A
Cumulative Perpetual Preferred Stock. Dividends on the Series A
Preferred Stock underlying the depositary shares will be paid when
declared by the Board at a fixed rate of 6.875% with a
liquidation preference equivalent to $25.00 per depositary share.
In connection with the offering, the Company has granted the
underwriters a 30-day option to purchase up to an additional
$7.5 million of depositary shares
solely to cover overallotments. The offering is expected to close
on or about October 7, 2019, subject
to customary closing conditions.
The Company's depositary shares are expected to begin trading on
NASDAQ under the symbol "RILYP" within 30 business days of the
closing date of this offering, if approved.
Net proceeds of this offering will be used for general corporate
purposes, including funding future acquisitions and investments,
repaying indebtedness, making capital expenditures and funding
working capital.
B. Riley FBR, Incapital, Janney
Montgomery Scott and Ladenburg Thalmann are acting as
book-running managers for this offering. Wedbush Securities,
William Blair and Boenning &
Scattergood are acting as co-managers.
The depositary shares will be 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 depositary shares will be made only by means of a prospectus
supplement and accompanying base prospectus, which will be 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 or 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 depositary shares, nor shall
there be any sale of the depositary shares in any jurisdiction in
which such offer, solicitation or sale would not be permitted.
About B. Riley Financial (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 preferred stock 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 preferred
stock 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's
periodic filings with the SEC, including, without limitation, the
risks described in B. Riley Financial'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 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
View original content to download
multimedia:http://www.prnewswire.com/news-releases/b-riley-financial-prices-50-million-offering-of-depositary-shares-300930099.html
SOURCE B. Riley Financial