Shares of B. Riley Financial, Inc. (NASDAQ:RILY) surged 15% after the company announced a private bond exchange agreement designed to cut its debt by about $46 million. The diversified financial services firm disclosed that it has reached an arrangement with an institutional investor to swap approximately $139 million of outstanding Senior Notes for $93 million in newly issued notes.

The transaction involves exchanging $30 million of notes due in March 2026, $75 million due December 2026, and $35 million due January 2028 for $93 million in 8.00% Senior Secured Second Lien Notes maturing January 1, 2028. Along with this, B. Riley will grant warrants for roughly 372,000 common shares priced at $10.00 per share, exercisable over a seven-year period.

Commenting on the move, Chairman and Co-CEO Bryant Riley emphasized the company’s focus on debt reduction: “This latest exchange is the largest yet and will eliminate over $100 million in 2026 maturities, significantly decreasing near-term debt obligations and marking a crucial advancement for the company.” He added that B. Riley Financial plans to use the remaining capacity under its Senior Secured Second Lien facility to further enhance its balance sheet.

The announcement was positively received by investors, as reflected in the sharp rise in the company’s stock price, signaling confidence in B. Riley’s approach to optimizing its capital structure.

B. Riley stock price