B. Riley Sells Majority of Great American to Oaktree Funds (1)

B. Riley Financial Inc., the money-losing broker-dealer and investment firm looking to cut debt, agreed to sell a majority stake in its Great American Holdings business to funds managed by Oaktree Capital Management LP. The shares surged as much as 27% in New York trading.

Terms of the deal call for B. Riley to receive about $203 million in cash and get 47% of the common units of a reorganized Great American, the companies said in a statement Monday. B. Riley also gets preferred units initially valued at $183 million. Oaktree, known for investing in distressed companies, will ...