BRC Group Calls $142.1 Million of 6.50% Senior Notes for Full Redemption

BRC Group Holdings has called the entire $142.1 million principal amount of its 6.50% Senior Notes due 2026 for redemption, setting Sept. 29 as the date when holders are scheduled to receive their principal back along with accrued interest. The notes trade on Nasdaq under the symbol RILYN and will cease trading on the redemption date, according to the company’s announcement.

The timing makes this a near-maturity payoff rather than a long-dated refinancing. RILYN is scheduled to mature on Sept. 30, 2026, so BRC is redeeming the issue one day before its stated maturity date. The company did not identify a specific funding source for the payment, and the announcement did not say that the redemption changes any of BRC’s other outstanding note series.

RILYN holders will receive par plus accrued interest

Under the redemption announcement carried by Nasdaq, BRC is calling $142,137,375 in aggregate principal amount. The redemption price is 100% of principal, plus accrued and unpaid interest from the most recent interest payment date up to, but excluding, Sept. 29. Notices of redemption were delivered to noteholders on Aug. 28.

Interest will stop accruing on and after the redemption date. BRC also said RILYN will be delisted from Nasdaq and cease trading that day. Investors who hold the notes through a bank or broker were directed to that intermediary for details on receiving the redemption payment.

The terms of the series make the par redemption consistent with the note documents. The notes were issued in 2019 when the company operated as B. Riley Financial, with a Sept. 30, 2026 maturity and a $25 denomination. The prospectus provided for optional redemption before maturity, and after Sept. 30, 2024 the company could redeem the notes at 100% of principal plus accrued and unpaid interest. That means the Sept. 29 call is being made inside a redemption window that had already moved to par value.

Because the payment comes immediately before maturity, the economic effect for remaining holders is different from an early call that removes years of future coupon income. RILYN investors were already approaching the scheduled end of the instrument. The practical changes are that principal is returned a day earlier, accrued interest stops on Sept. 29, and the security disappears from Nasdaq rather than trading through its Sept. 30 maturity.

BRC had already reduced the outstanding RILYN balance

The $142.1 million being called is lower than the amount of the same notes that BRC carried at the end of 2025. In its second-quarter Form 10-Q filed with the SEC, the company reported a net carrying amount of about $142.13 million for the 6.50% notes at June 30, down from about $178.24 million at Dec. 31, 2025. The filing also shows how part of that decline occurred before the full redemption was announced.

During the first quarter, BRC completed privately negotiated Section 3(a)(9) exchanges that included 454,159 RILYN units. Another 991,172 RILYN units were exchanged during the second quarter. At the notes’ $25 principal denomination, the combined 1,445,331 units represent about $36.1 million of principal retired through those exchanges. The exchanges also involved several of BRC’s other senior note series, so the share issuances disclosed in the filings should not be attributed solely to RILYN.

The company has also been working through other 2026 maturities. Earlier this year, BRC called its 5.50% Senior Notes due March 31, 2026, known by the symbol RILYK, for full redemption on March 30. That call covered $95.99 million of principal. By June 30, the 5.50% series no longer appeared as an outstanding balance in the company’s senior-notes table.

Those steps put the RILYN redemption into a broader balance-sheet sequence, but they do not all have the same economic effect. The private exchanges retired debt in return for common stock, while the March redemption required a cash payment to noteholders. BRC’s Aug. 28 announcement does not say whether the coming RILYN payment will be funded from cash on hand, asset proceeds, borrowings or another source, so the financing mechanism should not be inferred from the size of the call alone.

The redemption removes one maturity, not BRC’s wider debt load

BRC’s latest reported balance sheet shows that RILYN is only one part of its capital structure. At June 30, the company reported about $1.13 billion of senior notes payable on a net basis and $1.28 billion of total debt. That was down from $1.30 billion of senior notes payable and $1.43 billion of total debt at the end of 2025. BRC reported net debt of $285.2 million, down from $627.0 million six months earlier.

Management said the reduction in net debt was primarily due to investment appreciation. That distinction is important because net debt is affected by the value of investments and other balance-sheet items, not only by the amount of bonds repaid. BRC ended the second quarter with $155.6 million of cash, cash equivalents and restricted cash, while total investments were reported at $804.5 million. Those figures describe the company’s latest disclosed resources, but they do not establish the source BRC will use for the Sept. 29 redemption.

Near-term debt obligations also remain after RILYN is retired. BRC’s June 30 filing listed about $163.84 million, net, of 5.00% Senior Notes due Dec. 31, 2026, trading as RILYG. The company also had senior notes due in 2028, along with term loans and revolving credit facilities. Full redemption of the 6.50% issue therefore removes a specific $142.1 million maturity from the schedule without eliminating BRC’s broader refinancing and debt-management needs.

For RILYN holders, the next concrete date is Sept. 29. BRC says interest will stop accruing and the notes will be delisted that day as the company pays principal plus the required accrued interest. After that, attention shifts to the remaining 2026 obligations, including the 5.00% notes due at the end of December, and to any further balance-sheet actions BRC takes before year-end.