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B Riley Prices Giant Sized Baby Bond Issue

B Riley (RILY) has priced their previously announced baby bond issue.

The issue prices at 5.00%. The issue is rated BBB+ by Egan-Jones.

The company is selling a giant sized 12 million shares (bonds) with another 1.8 million available for over-allotment. Interestingly the company had preannounced a 6 million share sale so this was obviously upsized from the original amounts.

RILY has many outstanding baby bonds and preferred stock issues which can be seen here.

With the large issuance for this new issue there should be little doubt they will redeem the RILYO 6.75% issue. Additionally they may redeem the RILYM 6.375% issue. In both instances the company would have to pay a ‘bonus’ for early redemption.

The issue will trade on NASDAQ sometime in the next week or so under ticker RILYG. There is no OTC trading, but if one desires access to shares prior to exchange trading they will need to call their brokers bond desk.

The pricing term sheet is here.

5 thoughts on “B Riley Prices Giant Sized Baby Bond Issue”

  1. If I remember correctly, only once has RILY been quick on the draw in calling issues after issuing newer ones describing a possible call… If they were to use proceeds to call RILYM as well as RILYO, they would have to pay 25.75 on RILYM or wait until 2/28/22 when premium goes down to 25.50. I bet RILYM will remain outstanding at least thru 2/28/22.

    1. 2WR,
      Looks like you were right about the delayed call from Rily. I parked some cash in RILYO thinking they might wait till May when they only have to pay $25.25 to redeem. There is a $.42 dividend pay date on 4/30 so it would be hard to loose buying under the current call price of$25.50.

      1. 35spline:

        Correct. I got greedy trying to buy RILYO yesterday at $25.20 and missed out. Could be a $25.25/share redemption starting on 5/31/22.

        The big, dumb preferred ETF PFF had 370,000+ shares of RILYO as of 9/30/21, so I’m hoping they go into “price-insensitive” sell mode on it again as the outflows keep hitting that monster $18 Billion preferred fund (another $77 million in outflows for PFF so far this week).

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