B. Riley Financial secures $236M in cash proceeds from brands assets

B. Riley Financial (RILY) announced it and its subsidiary, bebe stores, have completed a transaction for their brand assets yielding approximately $236M in cash proceeds to B. Riley. At the closing of the transaction, B. Riley transferred and contributed its interests in the assets and intellectual property related to the licenses of several brands, including Hurley, Justice, Scotch & Soda, Catherine Malandrino, English Laundry, Joan Vass, Kensie, Limited Too and Nanette Lepore to a securitization vehicle, receiving approximately $189M in net proceeds in connection with the financing transaction. bebe sold its interests in the assets and intellectual property related to the licenses of the bebe and Brookstone brands for approximately $47M in net cash proceeds also at the closing. B. Riley acquired the portfolio of brands (excluding bebe and Brookstone) for approximately $222M and received $179M in distributions during its ownership. The company plans on utilizing the proceeds from this transaction to pay down outstanding senior secured debt and deleverage its balance sheet.