Why B. Riley Financial (RILY) Stock Is Trading Higher

B. Riley Financial Inc RILY shares are trading higher by 9.6% to $4.44 during Wednesday’s session after the company announced it has entered into a privately negotiated exchange agreement with an institutional investor to reduce the company’s total outstanding debt by approximately $35 million.

What To Know: B. Riley Financial on Wednesday announced a privately negotiated exchange agreement with an institutional investor, reducing its total outstanding debt by approximately $35 million.

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Under the agreement, the investor will exchange around $123 million in outstanding Senior Notes—$86 million in 5.5% notes due March 2026 and $37 million in 5.0% notes due December 2026—for $88 million in newly issued 8.00% Senior Secured Second Lien Notes due January 2028.

Additionally, the company will issue the investor warrants to purchase 351,000 common shares at $10 per share, exercisable for seven years. Chairman and Co-CEO Bryant Riley emphasized the move as a strategic step toward optimizing the company's capital structure, with potential for further transactions.

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How To Buy RILY Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in B. Riley Financial’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, RILY has a 52-week high of $40.09 and a 52-week low of $2.73.