After news broke of a deal struck between distressed financial services firm B. Riley Financial and Oaktree Capital Management, B. Riley saw its stock increase 23.46% from Friday’s close price to Monday’s close.

Under the agreement, B. Riley will sell the majority of its Great American Group business unit to the Brentwood-based assets management company at an enterprise value of $386 million.

Riley’s board of directors approved this deal, which aims to address the firm’s reported $1.9 billion in total debt as of last month.

When the deal officially closes presumably in the fourth quarter, Sawtelle-based B. Riley will receive an estimated $203 million in cash.

Bryant Riley, chair and co-chief executive of B. Riley, called the transaction “an important step in our plan to reduce our debt while reinvesting in our core financial services businesses” in a statement.

“We believe Oaktree’s scale and expertise in alternative investments and their strength as a capital provider, combined with the Great American Group’s leading position as a provider of asset disposition, financial advisory and real estate advisory services, will prove complementary as we join forces to deliver financial products and services to better serve our clients,” Riley said.

After finding itself amid a Securities and Exchange Commission investigation based on its dealing with Franchise Group Inc., B. Riley’s stock sank in mid-August and the firm subsequently suspended its dividend.

Last month, B. Riley teased the Great American deal in addition to a “non-binding commitment” for debt financing of B. Riley and Bebe Stores, Inc. brands to pay back its debt.

Nick Basso, managing director at Oaktree, called Great American deal “an exciting investment opportunity for Oaktree” in a statement.

“We are eager to provide both capital and our extensive operating expertise to support the future growth of the business,” Basso said.