B. Riley Financial Inc. has acquired 29 percent of Bebe Stores Inc. for $16.9 million, the company announced Tuesday.

The Woodland Hills financial services company converted its existing loan to the Los Angeles-based apparel retailer into shares of Bebe common stock. The conversion price was $6 per share, a premium of 35 percent over Bebe’s trading price at the close of business on Jan 12.

“This investment reflects the core strategy of B. Riley Principal Investments, which is to invest in companies or corporate assets that present attractive cash flows to generate dividends for shareholders,” Bryant Riley, chief executive of B. Riley Financial, said in a statement.

B. Riley also will have two out of five seats on Bebe board of directors.

Shares of B. Riley Financial (RILY) closed Tuesday down 15 cents, or less than a percent, to $18.80 on the Nasdaq.