B. Riley Financial has entered into a definitive agreement with Oaktree Capital Management to establish a partnership in Great American Holdings, LLC. The transaction values Great American NewCo at $386 million, with Oaktree investing $203 million in cash for approximately 53% of common units and Class A Preferred Units, while B. Riley retains about 47% ownership and receives Class B Preferred Units.The deal involves B. Riley's Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate businesses. The new entity will have a five-member board with Oaktree appointing the majority of directors. The Class A Preferred Units will carry a 7.5% cash coupon plus 7.5% PIK coupon, while Class B Preferred Units will have a 2.3% PIK coupon.The transaction, expected to close in Q4 2024, aims to reduce B. Riley's debt while maintaining significant equity upside. The partnership leverages Oaktree's expertise in alternative investments and capital provision with Great American Group's asset disposition and advisory services capabilities. The deal is subject to regulatory approvals and customary closing conditions.

B. Riley Financial has entered into a definitive agreement with Oaktree Capital Management to establish a partnership in Great American Holdings, LLC. The transaction values Great American NewCo at $386 million, with Oaktree investing $203 million in cash for approximately 53% of common units and Class A Preferred Units, while B. Riley retains about 47% ownership and receives Class B Preferred Units.The deal involves B. Riley's Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate businesses. The new entity will have a five-member board with Oaktree appointing the majority of directors. The Class A Preferred Units will carry a 7.5% cash coupon plus 7.5% PIK coupon, while Class B Preferred Units will have a 2.3% PIK coupon.The transaction, expected to close in Q4 2024, aims to reduce B. Riley's debt while maintaining significant equity upside. The partnership leverages Oaktree's expertise in alternative investments and capital provision with Great American Group's asset disposition and advisory services capabilities. The deal is subject to regulatory approvals and customary closing conditions.