RILYK - B. Riley Financial Suspends Preferred Stock Dividends - Sell (Rating Downgrade)
2025-01-21 23:04:03 ET
Summary
- On Tuesday, preferred shares of B. Riley Financial cratered after the company suspended quarterly dividends.
- Unpaid dividends will continue to accrue and after six quarters, preferred shareholders will gain the right to nominate two additional directors.
- However, with more than $1.6 billion in debt ranking ahead of equity holders in the company's capital structure, it is increasingly difficult to depict a positive outcome for equity holders.
- At this point, addressing more than $730 million in debt maturities until the end of 2026 looks like a Herculean task.
- With a very high likelihood of equity holders being wiped out in a potential bankruptcy, I am downgrading the company's common and preferred shares to "Sell".
Note
I have covered B. Riley Financial, Inc. or "B. Riley" (NASDAQ: RILY , NASDAQ: RILYL , NASDAQ: RILYP , NASDAQ: RILYM , NASDAQ: RILYK , NASDAQ: RILYN , NASDAQ: RILYG , NASDAQ: RILYT , NASDAQ: RILYZ ) previously, so investors should view this as an update to my earlier articles on the company. ...
B. Riley Financial Suspends Preferred Stock Dividends - Sell (Rating Downgrade)