B. Riley Financial: Are The Bonds Toast?

2025-05-19 02:46:19 ET

Summary

• B. Riley Financial has failed to file its fiscal 2025 first quarter Form 10-Q, as shareholders and bondholders maintain their sell RILY positioning.
• The company's baby bonds are trading at distressed levels, as the market prices in the worst-case scenario.
• Free cash flow is trending down, as liquidity issues look set to become acute, just as the wall of debt maturities in 2026 comes into view.

B. Riley Financial ( RILY ) was unable to file its fiscal 2025 first quarter Form 10-Q on time, on the back of receiving a Nasdaq delinquency notice for failing to file its fiscal 2024 full-year report or Form 10-K. The last reported Form 10-Q was for the quarter ended September 30, 2024. This discombobulation of filing duty to the stock and bondholders has crystallized a deep selloff of the outstanding fixed income securities as the market prices in the worst-case scenario. RILY has historically been heavily reliant on the issues of preferred stock and baby bonds to build its capital stack with seven of these fixed income securities currently outstanding. Critically, the longer dated baby bonds are trading at steep discounts to their $25 per note liquidation values as the market prices in a debt restructuring as its base case for the firm....

Read the full article on Seeking Alpha

For further details see: