LOS ANGELES, Feb. 10, 2020 /
PRNewswire/ --
B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company") today announced it has commenced an underwritten registered public offering of $50 million aggregate principal amount of senior notes due 2025, subject to market and certain other conditions. The Company expects to grant the underwriters a 30-day option to purchase additional senior notes in connection with the offering solely to cover overallotments.
B. Riley Financial and this issuance of notes both received an investment grade rating of BBB+ from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.
The Company expects to use 20% of the net proceeds of this offering to redeem a portion of its existing 7.50% Senior Notes due 2027 (once these notes are subject to optional redemption, on or after May 31, 2020) and the remaining net proceeds for general corporate purposes, including funding future acquisitions and investments, repaying indebtedness, making capital expenditures and funding working capital.