B. Riley Financial has completed a strategic partnership with Oaktree Capital Management to spin off its Great American Group business into an independent entity. The transaction, closed on November 15, 2024, involved Oaktree investing $200 million for approximately 52.6% of Class A Common Units and all Class A Preferred Units in the newly formed Great American Holdings LLC.B. Riley retained approximately 44.2% of Class A Common Units and 93.2% of Class B Preferred Units in the new entity. The deal structure includes Class A Preferred Units with a 7.5% cash coupon plus 7.5% PIK coupon, having an initial liquidation preference of $203 million, while Class B Preferred Units carry a 2.3% PIK coupon with $183 million initial liquidation preference.Of the $200 million proceeds, B. Riley used $92.7 million to reduce its...Show More

B. Riley Financial has completed a strategic partnership with Oaktree Capital Management to spin off its Great American Group business into an independent entity. The transaction, closed on November 15, 2024, involved Oaktree investing $200 million for approximately 52.6% of Class A Common Units and all Class A Preferred Units in the newly formed Great American Holdings LLC.B. Riley retained approximately 44.2% of Class A Common Units and 93.2% of Class B Preferred Units in the new entity. The deal structure includes Class A Preferred Units with a 7.5% cash coupon plus 7.5% PIK coupon, having an initial liquidation preference of $203 million, while Class B Preferred Units carry a 2.3% PIK coupon with $183 million initial liquidation preference.Of the $200 million proceeds, B. Riley used $92.7 million to reduce its Nomura credit facility balance to $125 million, while $32.6 million went toward transaction costs and minority investors. The company expects to record a gain of approximately $235 million from this transaction in Q4 2024. The new entity will be governed by a four-member board, with Oaktree holding majority board appointment rights while maintaining certain protective rights for B. Riley.