09:33 AM EDT, 03/26/2025 (MT Newswires) -- B. Riley Financial ( RILY ) said Wednesday morning it has negotiated an exchange agreement with an institutional investor that is expected to reduce the company's outstanding debt by around $35 million.

Under terms of the private agreement, the unnamed investor agreed to swap about $123 million in existing senior notes, consisting of $86 million of the company's 5.5% senior notes maturing in March 2026 and $37 million of Rily's 5.0% senior notes coming due in December 2026, for $88 million of newly issued 8% senior secured second-lien notes due in January 2028.

B. Riley also said it is issuing seven-year warrants to the investor to buy up to 351,000 common shares exercisable at $10 apiece.

Shares were up nearly 2% in early trading.

Price: 4.13, Change: +0.08, Percent Change: +1.85