BBBY - Bed Bath & Beyond files to offer $300M shares guides Q4 sales below estimates

2023-03-30 09:45:20 ET

Bed Bath & Beyond ( NASDAQ: BBBY ) shares fell around 5% at market open on Thursday after the troubled home retailer launched an "at-the-market" offering program to sell up to $300M of shares .

Concurrent with the offering, the company has entered into a stock purchase agreement and a registration rights agreement with B. Riley Principal Capital II to secure additional capital.

Simultaneously, BBBY's previous public equity offering and all outstanding warrants for Series A Convertible Preferred Stock associated with that offering are being terminated.

Potential net proceeds from these financing transactions will be used immediately to fulfill conditions outlined in an amendment to the company's credit facility filed earlier today.

Furthermore, Bed Bath & Beyond ( BBBY ) reported prelim results for fourth quarter of fiscal year 2022, estimating net sales of approximately $1.2B, which is way below analysts' consensus of $1.41B .

Prelim Q4 comparable sales is projected to decline 40%-50%, with continued negative operating losses. Furthermore, the Union, New Jersey-based retailer sees modest free cash flow usage.

Sue Gove, president & CEO of Bed Bath & Beyond Inc. ( BBBY ) said, "The actions we've taken have enabled us to create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses. We have raised $360M of equity capital since the beginning of February, cured our default under our credit agreement, repaid material amounts of our ABL facility, completed our interest payment for our Senior Notes, all while jumpstarting our turnaround plans."

Shares of Bed Bath & Beyond ( BBBY ) have fallen around 97% over the past year

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