B. Riley Financial Announces $160 Million Debt Financing Provided by Oaktree

Core Viewpoint - B. Riley Financial has secured a new $160 million senior secured debt facility from Oaktree Capital Management, which will be used to retire existing debt and support a joint venture overseeing the liquidation of JOANN, a fabric and crafts retailer facing bankruptcy [1][2][4]. Group 1: Financial Transactions - B. Riley utilized approximately $118 million to retire outstanding debt under the Nomura Senior Secured Credit Agreement, with the remaining funds allocated for working capital and a joint venture investment [2]. - The new Term Loan Facility has an interest rate of SOFR plus 8.00% and includes warrants for Oaktree to purchase 1,832,290 common shares at an exercise price of $5.14 per share, representing a 20% premium to the 30-day VWAP prior to issuance [4]. Group 2: JOANN Liquidation - B. Riley's GA Group, in which it holds a 44% stake, was selected as the exclusive agent to manage the liquidation of JOANN, which has approximately $2 billion in retail inventory [3]. - The liquidation process is expected to be completed in about 12 weeks and is one of the largest transactions in GA Group's history [3]. Group 3: Strategic Implications - The partnership with Oaktree and the establishment of GA Group is seen as a significant step for B. Riley, enhancing its financial and strategic flexibility [4]. - The successful bid in JOANN's bankruptcy process highlights the potential of GA Group in large-scale retail liquidations, benefiting B. Riley as both an investor and through its equity stake [4].