B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of business advisory and financial services, today announced it has closed a $300 million underwritten registered public offering of 5.00% Senior Notes due 2026 (the “Notes”). The underwriters have a 30-day option to purchase up to an additional $45 million in aggregate principal amount of Notes.
The offering resulted in net proceeds of approximately $290.5 million after deducting underwriting discounts and commissions, but before expenses.
B. Riley Financial and this issuance of Notes each received a BBB+ rating from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The Notes are expected to begin trading on the Nasdaq Global Market under the ticker symbol “RILYG” following the closing date of this offering.
The Company intends to use the net proceeds from the offering for general corporate purposes, including funding future acquisitions and investments, repaying and/or refinancing indebtedness (which may, at the Company’s option, include redeeming all or a portion of its existing 6.75% Senior Notes due 2024), making loans and/or providing guaranty or backstop commitments to its clients in the ordinary course of business, making capital expenditures and funding working capital.
B. Riley Securities, Janney Montgomery Scott, Oppenheimer & Co., Ladenburg Thalmann, William Blair and InspereX acted as book-running managers for this offering. EF Hutton, division of Benchmark Investments, LLC, acted as lead manager for this offering. Aegis Capital Corp., Boenning & Scattergood, Brownstone Investment Group, Colliers Securities LLC, Huntington Capital Markets, Newbridge Securities Corporation and Wedbush Securities acted as co-managers.
The NBD Group acted as legal counsel to the Company. Duane Morris LLP acted as legal counsel to the underwriters.
The Notes were offered under the Company’s shelf registration statement on Form S-3ASR, which was automatically effective upon filing with the Securities and Exchange Commission (the “SEC”) on January 28, 2021. 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 or by contacting B. Riley Securities at (703) 312-9580 or prospectuses@brileyfin.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
