B. Riley obtains $500 million term loan and $100 million revolver

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – B. Riley Financial, Inc. and its wholly owned subsidiary BR Financial Holdings, LLC entered into a credit agreement on Aug. 21 with Nomura Corporate Funding Americas, LLC as administrative agent, providing for a $500 million secured term loan and a $100 million secured revolver, according to an 8-K filing with the Securities and Exchange Commission.

Both tranches were fully drawn at closing.

The credit facilities will mature on the earlier of Aug. 21, 2027 and 91 days prior to the maturity of any series of bonds, notes or other bank debt with an outstanding amount exceeding $25 million.

Proceeds were used to fund an equity investment in connection with the acquisition of Franchise Group, Inc., to repay outstanding obligations under the existing credit agreement dated June 23, 2021 with Nomura as agent, to fund a dividend reserve, to pay fees and expenses and for general corporate purposes.

Borrowings will accrue interest at adjusted term SOFR plus 600 basis points.

Financial covenants include a maximum senior secured net leverage ratio on the last day of any test period of 3x and, starting with the first full fiscal quarter ending after the closing date, a minimum interest coverage ratio on the last day of any test period within the thresholds ranging from 1.25 to 1.00 to 1.45 to 1.00.

Also, at any time liquidity is to be no less than $100 million; the total principal amount of the loans under the credit facilities is not to exceed 35% of the net asset value of BR Financial, as of the last day of any test period; and the total principal amount of the loans under the credit agreement shall not exceed 55% of the adjusted secured asset portfolio value, as of the last day of any calendar month as reflected in the borrowing base certificate for the relevant calendar month.

B. Riley is a Los Angeles-based financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.