B Riley to Sell Preferred Issue

Financial services company B Riley (RILY) will be selling a new cumulative perpetual preferred stock issue.

The company has 7 baby bond issues outstanding as well as 1 other preferred issue outstanding. The outstanding issue can be seen here.

The preliminary prospectus for the new issue can be read here.

The company has not announced any ‘call’ on debt outstanding with proceeds from the new issue.

Fabrib has this new issue right away this morning with EarlyBird chiming in with ‘yield talk’ in the 7.25-7.375% area.

18 thoughts on “B Riley to Sell Preferred Issue”

  1. I don’t trust them (someone mentioned self-serving leadership and I agree), so I stay away from the preferreds to avoid any dividend payment shenanigans but I do like the baby bonds when the occaisonal general sell-off hits the fixed income market and they are available at a discount.

  2. I haven’t previously followed issues from B Riley much. After a quick look, I’m not sure this new one would be a great candidate for a flip. Curious about the thoughts of others who have followed more closely.

    1. Since preferreds fell so much until recently apparently investors don’t think they’re strong. I don’t have any first hand knowledge, just reluctant to buy after a big rally.

    2. BRily business is feeding on distressed assets. During normal economic times is not a very scalable business model. As this next recession takes hold their deal pipeline should start filling up.

      No position but I suspect they will do extremely well in the next 3 years.

    3. I owned b.riley preferreds for a couple of years and used to follow. Just don’t trust this company with very self serving management. If investment bank can’t find cheaper money you should worry,

  3. If memory serves there was a partial call before the pandemic hit on the Z 7.5% baby bonds. Might call the rest. Shucks.

    1. I have a decent slug of Rilyz. This company has been doing gang busters. But a lot of moving parts and probably unrelated in many areas. Quite frankly its too hard a company to truly understand for me. It wont offend me if Z gets redeemed, but I wont sell either.

        1. Its hard to tell what they are up to, 2WR. They are always needing capital to buy God knows what, for whatever reason. And dont think this company is always a fine tuned machine. In 2009 the common stock was over $80 and two years later it was comfortably under $2.

          1. Still, pricing and the kind of passive mention of refinancing debt as a possible use of proceeds says to me they do not have much interest in calling Famous Last Words..

            1. 2WR, I probably wasnt being clear, but I have been in total agreement with you. Im just suggesting I wouldnt be upset if they did, as I then wouldnt have to worry about owning something I dont understand anymore. 🙂

              1. You were clear, Grid – My comment on possible calls from this issuance was more in response to what a couple of others had said on the thread…. I just don’t see this as just another in the collection of outstanding RILY $25’ers…

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