Company: RILYN
Filing Date: 2025-05-28
Form Type: 8-K
Source: 0001213900-25-048338
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Company: B. Riley Financial, Inc.
Filing Date: 2025-05-28
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On May 21, 2025 (the “ Closing
Date”), B. Riley Financial, Inc., a Delaware corporation (the “ Company”),
entered into a private exchange transaction with an institutional investor (the “ Investor”)
pursuant to which the Investor exchanged approximately $29.5 million aggregate principal amount of the Company’s 5.50% Senior Notes
due March 2026 Notes, approximately $75.0 million aggregate principal amount of the Company’s 5.00% Senior Notes due December 2026
and approximately $34.5 million aggregate principal amount of the Company’s 6.00% Senior Notes due January 2028 owned by it and
certain of its affiliates (the “ Exchanged Notes”) for approximately $93.1
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, previously filed as Exhibit 10.1 to the Current Report on Form 8-K filed on April 1, 2025. 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 foregoing description
of the Indenture does not purport to be complete and is qualified in its entirety by reference to the full text of the Indenture and Form
of 8.00% Senior Secured Note due 2028, which were attached as Exhibit 10.1 and Exhibit 10.2, respectively, to the Current Report on Form 8-K
filed on April 1, 2025.

Warrants

In connection with the exchange
transaction, the Company issued to certain affiliates of the Investor (the “ Holders”)
warrants (the “ Warrants”) to purchase 372,268 shares of the Company’s
common stock, $0.0001 par value per share (the “ Common Stock”), at an exercise
price of $10.00 per share.

The foregoing description
of the Warrants does not purport to be complete and is qualified in its entirety by reference to