BBBY - Bed Bath & Beyond pares monster gain after convertible stock deal announced
Bed Bath & Beyond ( NASDAQ: BBBY ) disclosed late on Monday that it is issuing Series A convertible preferred stock and associated warrants in order to raise funds to repay funds owed to certain creditors.
The retailer expects to raise approximately $225M of gross proceeds in the offering together with an additional approximately $800M of gross proceeds through the issuance of securities requiring the holder to exercise warrants to purchase shares of Series A Preferred Stock in future installments assuming certain condition are met.
BBY said it cannot give any assurances that it will receive any or all of the proceeds of the offering.
Shares of BBBY fell 11.05% in after-hours trading to $5.20 after gaining 92% during the regular session. The high level of short interest on BBBY and bankruptcy speculation has led to wild swings all year.
Read more about volatile day of trading for Bed, Bath & Beyond, as well as AMC and GameStop.
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Bed Bath & Beyond pares monster gain after convertible stock deal announced