Source: Investing Posted Monday 09/09/2024, 14:20
LOS ANGELES – B Riley Financial (NASDAQ: RILY), a diversified financial services company, today announced its intention to sell a majority stake in its Great American Group and secure financing for its brand portfolio, with the goal of significantly reducing its debt by the end of 2024. The company has entered into exclusive negotiations to sell a 53% stake in its valuation, real estate and solutions business, collectively known as the Great American Group, for an institutional value of approximately US$380 million. This section, currently listed in B. Riley’s books, is worth approximately US$35 million. In parallel, Be Riley has committed to arrange debt financing for Be Riley and Baby brands.
The transaction, which is expected to generate approximately $236 million, will be executed through a special purpose vehicle, guaranteeing the brands’ assets and not recourse to B. The company acquired the brand portfolio for approximately US$222 million and saw distributions of US$179 million, excluding Baby’s. The revenues raised from these transactions, estimated at $410 million, are primarily intended to reduce Nomura’s superior collateralized debt to about $125 million by the end of the year. Be Riley also plans to use available cash and proceeds from sales of other assets to address all 2025 maturities.
These moves are expected to strengthen the company’s balance sheet, with the next top bonds maturing in 2026, thereby enhancing its ability to focus on core business. Chairman and Co-CEO Bryant Riley stated that monetizing these assets to accelerate debt repayment is in line with the company’s focus on providing services to customers and partners in the SME market..
The company is also working on amending and reworking its credit agreement with Nomura Corporate Funding Americas, LLC, which is expected to be announced soon. In addition, on August 15, 2024, Bryant Riley proposed to go private placement of the company’s shares at a price of $7.00 per share for outstanding shares he does not own. A special committee of independent directors is evaluating this proposal, with no certainty that it will result in a deal.
B.Riley Finance offers a wide range of services, including investment banking, private wealth management, financial advisory, etc., through its subsidiaries and subsidiaries. This news release is based on a press release and includes forward-looking statements subject to risks, uncertainties and assumptions. There is no guarantee that the planned deals will be completed or the expected results will be achieved.
