Company: RILYN
Filing Date: 2025-04-01
Form Type: 8-K
Source: 0001213900-25-027230
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Company: B. Riley Financial, Inc.
Filing Date: 2025-04-01
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On March 26, 2025 (the “ Closing Date”), B. Riley
Financial, Inc., a Delaware corporation (the “ Company”), completed a private exchange transaction with an institutional
investor (the “ Investor”) pursuant to which the Investor exchanged approximately $86.3 million aggregate principal
amount of the Company’s 5.50% Senior Notes due March 2026 Notes and approximately $36.7 million aggregate principal amount of the
Company’s 5.00% Senior Notes due December 2026 owned by it (the “ Exchanged Notes”) for approximately $87.7 million
aggregate principal amount of newly-issued 8.00% Senior Secured Second Lien Notes due 2028 (the “ New Notes”), whereupon
the Exchanged Notes were cancelled.

Indenture

The New Notes were issued pursuant to an Indenture, dated as of the
Closing Date (the “ Indenture”), between the Company, certain subsidiaries of the Company, as guarantors, and GLAS Trust
Company LLC, a New Hampshire limited liability company, as trustee and collateral agent (in such capacities, the “ Trustee”),
and the New Notes are unconditionally guaranteed jointly and severally by all direct and indirect wholly-owned restricted subsidiaries
of the Company, subject to certain excluded subsidiaries (collectively, the “ Guarantors”). The New Notes are secured
on a second lien basis, junior to the obligations under the Company’s credit agreement, by substantially all of the assets of the
Company and the Guarantors. The New Notes are subordinated in right of payment to the payment in full of the obligations under the Company’s
credit agreement, dated as of February 26, 2025, with Oaktree Fund Administration, LLC, as administrative agent and as collateral agent,
as amended.

The New Notes will accrue interest a rate of 8.00% per annum, payable
semi-annually in arrears on April 30 and October 31, starting October 31, 2025. The New Notes will mature on January 1, 2028.

The Company may redeem the New Notes (i) at any time, in whole or in
part, before March 26, 2026, at a redemption price equal to 100% of the aggregate principal amount being redeemed, plusa customary
make-whole premium, plusaccrued and unpaid interest,