B. Riley Pays Off Nomura’s Loan with $160 Million From Oaktree
B. Riley Financial Inc. has lined up new funding to replace Nomura Holdings Inc., erasing what's left of a loan tied to an ill-fated buyout deal that has hobbled the brokerage and investment firm. The company's shares jumped 20% in premarket trading, and Oaktree Capital Management LP provided a $160 million senior secured debt facility with a double-digit interest rate. B. Riley will use most of the funds to retire Nomura's syndicated loan, while some will go towards working capital.
- This deal highlights the increasingly complex web of financings that can ensnare struggling companies like B. Riley, underscoring the need for closer regulatory oversight and clearer guidelines.
- What role will Oaktree's involvement in B. Riley's turnaround strategy play out over the next three years, particularly as it exercises warrants to gain a significant stake in the company?