Business
B. Riley Financial Provides Update on Strategic and Financing Initiatives
Negotiating Sale of Majority Stake in Great American Group at $380 Million Enterprise Value and Financing of Brands Portfolio for $236 Million Anticipates
About this update from Brc Group Holdings, Inc.
[{"type":"text","content":"Negotiating Sale of Majority Stake in Great American Group at $380 Million Enterprise Value and Financing of Brands Portfolio for $236 Million\nAnticipates Receiving Approximately $410 Million of Gross Cash Proceeds from Two Transactions\nIntends to Use Majority of Proceeds to Reduce Nomura Senior Secured Debt to Approximately $125 Million by End of 2024; Anticipates Using Cash on Hand and Proceeds from Other Asset Sales to Repay All 2025 Maturities\nCumulative Actions, If Completed, Would Result in Strengthened Balance Sheet with Next Senior Notes Maturing in 2026, Providing Company with Enhanced Ability to Invest in Core Operating Businesses \nExpects to Announce Amended and Restated Credit Agreement Shortly\nLOS ANGELES, Sept. 9, 2024 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) (\"B. Riley\" or the \"Company\"), a diversified financial services platform, today announced proposed strategic and financing initiatives intended to enhance shareholder value by accelerating debt repayment.\n\nThe Company is pleased to report that it has:\nEntered into a non-binding commitment for a debt financing of the B. Riley and bebe brands businesses. It is expected that the debt financing transaction will be effected through a special purpose vehicle collateralized by the brands assets and non-recourse to B. Riley. If completed, the transaction is expected to generate approximately $236 million of proceeds, which the Company plans to use to pay down its senior secured debt. B. Riley acquired the portfolio of brands (excluding bebe and Brookstone) for a total of approximately $222 million and received $179 million in distributions (excluding those received from bebe).Entered into exclusive negotiations with a global asset manager to sell a 53% stake in its Appraisal and Valuation Services, Real Estate and Retail, Wholesale & Industrial Solutions businesses (collectively known as \"Great American Group\"). The proposed transaction currently values the business at a total enterprise value of approximately $380 million. This business is currently carried on the Company's balance sheet at a book value of approximately $35 million.Both of these proposed transactions are subject to the completion of due diligence and the negotiation and execution of definitive agreements and there can be no assurance that any such agreements will be execu...