This issue was noted and discussed on the Reader Initiated Alerts page by many different folks yesterday–thanks.
Financial services company B Riley (NASDAQ:RILY) has sold a new issue of baby bonds. The company plans to redeem their 7.50% 2021 bonds (RILYL) with the proceeds.
The new issue of 4 million shares (bonds) will be priced with a fixed rate coupon of 6.50%. The bonds will have a maturity date of 9/30/2026. There are an addition 600,000 bonds available for overallotment.
Like some other B Riley issues these baby bonds can be redeemed early with bonus rates. On or after 9/30/2022 to 9/29/2023 at $25.50, on 9/30/2023 to 9/29/2024 at $25.25 and after this time at $25 plus accrued interest.
The bonds are rated BBB+ by Egan Jones, although they are not what we normally consider a “major” ratings agency. I believe these baby bonds would be considered “junk” rated by either S&P, Moodys or Fitch.
These bonds will trade under the ticker RILYN. There will be no OTC Grey market trading.
The company has numerous other baby bonds outstanding which can be seen here.