UPDATE–the ticker for this will be RILYM when it hits the market in a week (more or less).
Financial firm B Riley Financial (RILY) has announced an offering of new baby bonds.
The new offering will mature in 2025 and will have an early call period starting in 2021. Like many of the B Riley baby bond issues the issue will have a bonus for early redemption–3% the first year, 2% the 2nd and 1% the 3rd year–then at $25 thereafter.
The company plans to use the proceeds to call at least a portion of the 7.50% baby bonds (RILYZ) which become callable 5/31/20
Well that was quick, so much for a measly $50 million offering. Everybody is throwing cash at them. Its been upsized to $115 million plus the greenshoe.
https://seekingalpha.com/news/3540318-b-riley-prices-upsized-115m-offering-of-notes
It must be that great Egan-Jones BBB+ rating that’s attracting all the attention…… With greenshoe, amount of RILYZ to be called would be 26.5 mil. Best I can figure that would be 24% of 110 mil RILYZ outstanding, though mcg sees fewer outstanding than I see from a 425B5 from Dec.
the 424B5 is probably more accurate. I haven’t had time to go back and see what the timestamp on my data source is.
mcg – Last 10q also said 110 mil.
It’s already trading? Gray mkt symbol?
thx
Priced at 6.375%
Thanks tim.moore
price talk 6.375% – 6.500%
They are just taking advantage of the low interest rates.
Tim – Only 20% of net proceeds (not all proceeds) are intended to be used to do a partial call on RILYZ on 5/31.
Yes 2WR–that is why I said a ‘portion’–I saw the 20%, but who knows–could be 10% or could be 50%–we’ll know later for sure.
They have been very active with issuance…
Too active IMO. A glut of paper sooner or later