B. Riley trades higher on ~$46M debt reduction arrangement

B. Riley Financial (NASDAQ:RILY) was trading higher after the diversified financial services company announced about $46M debt reduction arrangement with "an institutional investor".

Shares were +29.36% Wednesday pre-market to $4.23.

RILY entered into a privately negotiated exchange agreement with the investor to exchange the company's ~$139M in outstanding senior notes for $93M in newly issued 8.00% senior secured second lien notes due January 1, 2028.

The ~$139M of outstanding senior notes consist of $30M in March 2026 notes, $75M in December 2026 notes and $35M in January 2028 notes.

Additionally, the company is set to issue to the investor warrants to purchase an aggregate of about 372K shares at $10.00 per share.

The warrants are exercisable for a period of seven years from the issuance date.

"We've made significant progress addressing our capital structure over the past several months as we've negotiated three bond exchanges to reduce our total outstanding debt by ~$93M," said Chairman Bryant Riley.

"The exchange announced today represents our largest to date and eliminates more than $100M in 2026 maturities, representing a significant reduction in near-term debt," added Riley.