B. Riley Financial Inc. priced an underwritten registered public offering of 2 million depositary shares at an initial public offering price of $25.00 per depositary share, for gross proceeds of $50 million before deducting underwriting discounts and other estimated offering expenses.
Underwriters have a 30-day option to purchase up to an additional $7.5 million of depositary shares to cover overallotments.
Each depositary share represents a 0.001 interest in a share of the company's 6.875% series A cumulative perpetual preferred stock. Dividends on the series A preferred stock underlying the depositary shares will be paid when declared by the board at a fixed rate of 6.875% with a liquidation preference equivalent to $25.00 per depositary share.
The offering is expected to close on or about Oct. 7. The depositary shares are expected to begin trading on Nasdaq under the symbol RILYP within 30 business days of the closing date, if approved.
Net proceeds of the offering will be used for general corporate purposes, including funding future acquisitions and investments, repaying debt, making capital expenditures and funding working capital.
B. Riley FBR, Incapital, Janney Montgomery Scott and Ladenburg Thalmann are acting as book-running managers for the offering. Wedbush Securities, William Blair and Boenning & Scattergood are serving as co-managers.
