B. Riley Financial Boosts Flexibility with New Credit Terms
B. Riley Financial Strengthens Financial Position with Credit Facility Amendment
B. Riley Financial, Inc. (NASDAQ: RILY), a dynamic financial services company, is making headlines with its recent amendment to the senior secured credit agreement with Oaktree Capital Management, L.P. This strategic move represents a significant shift in the company’s operational flexibility and financial health.
Enhancements to Credit Facility Provide Greater Flexibility
The updated Term Loan Facility opens up a new investment basket, allowing B. Riley Financial to deploy an additional $100 million to facilitate various business transactions effectively. This flexibility will empower the company to leverage its balance sheet for future opportunities.
Moreover, the investment basket dedicated to the parent company has been escalated from $20 million to $30 million, providing more room for operational maneuvers. Additionally, the facility allows for deploying up to $25 million in cash to reduce other debts, potentially including the repurchase of unsecured notes.
Company Leadership Expresses Gratitude
Bryant Riley, Chairman and Co-Chief Executive Officer, expressed his appreciation for the ongoing collaboration with Oaktree. He noted that this amendment not only strengthens existing relationships but also creates enhanced opportunities for B. Riley Financial as it moves forward with its strategic plans.
Background of the Credit Agreement
The initial credit agreement was reached in February 2025 and was particularly instrumental in retiring debt associated with the Nomura Senior Secured Credit Agreement, as well as in funding essential working capital. It's important to highlight that this Term Loan Facility does not permit any incremental borrowings beyond the outlined enhancements.
About B. Riley Financial
B. Riley Financial is a multifaceted financial services provider that offers tailored solutions to meet the varied needs of its clients and partners. With a focus on delivering collaborative solutions across investment banking, private wealth management, and financial consulting, B. Riley helps organizations navigate through all stages of their business life cycle. Its commitment to leveraging cross-platform expertise allows the company to support its clients with comprehensive financial services.
B. Riley Financial not only serves its clients effectively but also engages in strategic investments that aim to benefit its shareholders. This includes originating and underwriting senior secured loans for asset-rich companies, reinforcing its capacity to adapt and grow in a rapidly changing financial landscape.
Frequently Asked Questions
What recent changes did B. Riley Financial make to its credit facility?
They amended their senior secured credit agreement to enhance operational flexibility, increasing investment capacities and allowing for debt reduction initiatives.
Who is managing the investment related to B. Riley's credit agreement?
The funds are managed by Oaktree Capital Management, L.P., highlighting a strong partnership.
What is the significance of the new $100 million investment basket?
This new investment basket enables B. Riley Financial to leverage its balance sheet more effectively for strategic transactions.
How has B. Riley Financial's leadership responded to these changes?
Bryant Riley, the CEO, expressed gratitude towards Oaktree for their ongoing relationship and highlighted the opportunities this amendment brings.
What sectors does B. Riley Financial serve?
B. Riley Financial provides extensive services including investment banking, private wealth management, and financial consulting to meet various client needs.
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