BBBY - Bed Bath & Beyond stock dips ~10% after launching stock and warrants offering

Bed Bath & Beyond ( NASDAQ: BBBY ) on Monday after the bell announced a public offering of its Series A convertible preferred stock, warrants to purchase the convertible preferred stock, and warrants to purchase its common stock.

BBBY down ~10% in after hours at $5.51. Stock closed 92% higher on Monday.

The company said it expects to raise about $225 million in the offering together with an additional $800 million through issuance of securities requiring the holder thereof to exercise warrants to purchase shares of Series A preferred stock in future installments assuming certain condition are met.

BBBY intends to use the net proceeds from the initial closing of the offering, along with $100 million to be drawn under its amended and upsized FILO facility, to repay outstanding revolving loans under its ABL facility.

B. Riley Securities is acting as sole book-running manager for the offering.

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