Company: RILYN
Filing Date: 2025-03-04
Form Type: 8-K
Source: 0001213900-25-020254
Chunk: 2

Company: B. Riley Financial, Inc.
Filing Date: 2025-03-04
Form: 8-K
Item: Item 1.01
Chunk 2
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 for the Company's common stock,
$0.0001 par value per share (the " Common Stock"), exceeds a certain threshold.

Prepayments

The Borrower may voluntarily prepay borrowings
under the Credit Agreement. With respect to the first $62.5 million in principal amount prepaid of the Initial Term Loans, the Borrower
will be required to pay a prepayment premium equal to 5.0% of such Initial Term Loans prepaid. With respect to the final $62.5 million
in principal prepaid of the Initial Term Loans, the Borrower will be required to pay a prepayment premium equal to, (x) if such prepayment
occurs before the second anniversary of the Closing Date, an amount equal to the sum of (I) all required payments of interest (calculated
at the rate of interest in effect on the applicable repayment or prepayment date, assuming that all such interest accrues at the Prepayment
Premium Rate (as defined in the Credit Agreement)) on the principal amount of the Initial Term Loans being prepaid or repaid from the
applicable repayment or prepayment date through (but excluding) the second anniversary of the Closing Date, discounted at a discount factor
equal to the Treasury Rate plus 0.50%, plus (II) 5.00% of the principal amount of the Initial Term Loans being repaid or prepaid, and
(y) if on or after the second anniversary of the Closing Date, 5.00% of the principal amount of the Initial Term Loans being repaid or
prepaid.

Subject to certain eligibility requirements, certain assets of the
Borrower are placed into a borrowing base (the “ Borrowing Base”), which serves to limit the borrowings under the Credit
Facilities. The sale of an asset in the Borrowing Base requires the Borrower to make a prepayment in an amount equal to the proceeds of
such disposition multiplied by the percentage “credit” that is assigned to such asset in the Borrowing Base. If the Borrowing
Base (based on the most recent valuation as of the date of determination) is not on any day at least 150% of the aggregate principal amount
of the Initial Term Loans and the Delayed Draw Term Loans outstanding on such date, the Borrower is obligated to prepay the loans or post
cash in a controlled account in an aggregate amount equal to the amount required to make the Borrowing Base be at least 150% of the aggregate
principal amount of the Initial Term Loans