By James McCandless
San Antonio, Oct. 2 – B. Riley Financial, Inc. priced an upsized $50 million offering of $25-par series A cumulative perpetual preferred stock at par with a dividend of 6.875%, according to an FWP filing with the Securities and Exchange Commission.
There is a $7.5 million greenshoe.
The deal, announced Wednesday morning, was upsized from an initial $35 million and matched talk for a yield in the 6.875% area.
B. Riley FBR, Inc., Incapital LLC, Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. LLC are the joint bookrunners.
The preferreds are redeemable on or after Oct. 7, 2024 at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event at par and within 120 days after a change-of-control at par.
B. Riley plans to use the proceeds for general corporate purposes, including funding future acquisitions and investments, repaying debt, funding capital expenditures and funding working capital.
The company plans to list the preferreds on the Nasdaq under the symbol “RILYP.”
B. Riley is a Woodland Hills, Calif.-based financial services company.
| Issuer: | B. Riley Financial, Inc.
|
| Description: | Series A cumulative perpetual preferred stock
|
| Amount: | $50 million, or 2 million shares
|
| Greenshoe: | $7.5 million, or 300,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | B. Riley FBR, Inc., Incapital LLC, Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. LLC
|
| Co-managers: | Wedbush Securities Inc., William Blair & Co, LLC and Boenning & Scattergood, Inc.
|
| Dividend: | 6.875%
|
| Price: | Par of $25.00
|
| Yield: | 6.875%
|
| Call: | On or after Oct. 7, 2024 at par; prior to that, within 90 days after a delisting event at par and within 120 days after a change of control at par
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 7
|
| Distribution: | SEC registered
|
| Listing: | Nasdaq: RILYP
|
| Talk: | 6.875% area
|
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