Expands portfolio of
performing receivables purchased in connection with FRG's acquisition of
Badcock
LOS ANGELES, Oct. 18, 2022 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley") today announced that its
subsidiary has purchased a second portfolio of performing receivables from W.S.
Badcock Corporation ("Badcock"), one of the largest home-furnishing
retailers in the country. Badcock is a subsidiary of Franchise Group, Inc.
(NASDAQ: FRG) ("FRG"), a leading franchise operator.
B. Riley previously acquired
$535 million of performing Badcock receivables for approximately $400 million
in connection with FRG's acquisition of Badcock in December 2021.
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial, said: "This purchase
represents our continued ability to invest in opportunities that can mutually
benefit key relationships of our platform like FRG, and generate strong returns
for our shareholders."
Under terms of the agreement,
an SPV majority owned by B. Riley has purchased approximately $198 million of
Badcock's performing receivables for an aggregate purchase price of
approximately $168 million. The SPV has the option to purchase up to an
additional $75 million of receivables over the six months post-closing, subject
to certain limitations.�The SPV financed the transaction using a
$148 million senior secured term loan credit facility from Pathlight Capital
LP, which included a limited guaranty of $15 million from B. Riley. Badcock
will continue to service and administer the purchased receivables.
Badcock is a retailer of
furniture, appliances, bedding, electronics, home office equipment,
accessories, and seasonal items that offers multiple flexible payment and
credit solutions to its customers. Badcock operates online and in over 380
stores in eight states across the Southeast US.
B. Riley companies provided
financial advisory services to support an expedited and efficient closing of
the transaction. Choate Hall & Stewart LLP served as legal counsel to B.
Riley Financial. Willkie Farr & Gallagher LLP served as legal counsel to
FRG.
About B. Riley Financial
B. Riley Financial is a
diversified financial services platform that delivers tailored solutions to
meet the strategic, operational, and capital needs of its clients and partners.
B. Riley leverages cross-platform expertise to provide clients with full service,
collaborative solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end, collaborative financial
services across investment banking, institutional brokerage, private wealth and
investment management, financial consulting, corporate restructuring,
operations management, risk and compliance, due diligence, forensic accounting,
litigation support, appraisal and valuation, auction and liquidation services.
B. Riley opportunistically invests to benefit its shareholders, and certain
registered affiliates originate and underwrite senior secured loans for
asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or
more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.
Contacts
Investors
Mike Frank
ir@brileyfin.com
(212) 409-2424
Media
Jo Anne McCusker
press@brileyfin.com
(646) 885-5425
SOURCE B. Riley Financial