Investing.com -- B. Riley Financial, Inc. (NASDAQ: RILY ) shares soared 15% following the announcement of a private bond exchange agreement aimed at reducing the company’s debt by approximately $46 million. The diversified financial services company revealed it has entered into an arrangement with an institutional investor to exchange roughly $139 million in outstanding Senior Notes for $93 million in newly issued notes.

The agreement involves swapping $30 million in March 2026 notes, $75 million in December 2026 notes, and $35 million in January 2028 notes for $93 million in 8.00% Senior Secured Second Lien Notes due January 1, 2028. Additionally, B. Riley Financial will issue warrants for about 372,000 common shares at an exercise price of $10.00 per share, which are exercisable over a seven-year term.

Chairman and Co-Chief Executive Officer Bryant Riley commented on the strategic financial move, highlighting the company’s efforts in reducing its total outstanding debt by approximately $93 million through three bond exchanges. 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. B. Riley Financial anticipates using the remaining capacity under its Senior Secured Second Lien facility to further strengthen its balance sheet.

The news was well received by the market, with the stock’s significant uptick reflecting investor confidence in the company’s ability to manage its capital structure effectively.

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