- Bed Bath & Beyond ( NASDAQ: BBBY ) announced on Wednesday privately negotiated senior notes exchange agreement and a concurrent private placement of common stock as it works to improve liquidity.
- The omnichannel retailer entered into exchange agreement with an existing holder of its 4.915% Senior Notes due 2034 and 5.165% Senior Notes due 2044 that owns ~$9.5M of the 2034 notes and $22M of the 2044 notes.
- Pursuant to the exchange agreement, Bed Bath & Beyond ( BBBY ) will issue ~2.8M shares of common stock to the existing holder, which would consist of 1.8M shares in exchange for the exchange notes, 0.1M shares in satisfaction of including accrued and unpaid interest thereon the exchange notes and 0.9M shares in exchange for a cash payment from the existing holder of $3.5M.
- Proceeds of the private placement of common stock will be used for general corporate purposes. The transaction is expected to close around November 14, 2022.
- BBBY shares dipped around 1% premarket and have slid 81% over the past year
For further details see:
Bed Bath & Beyond enters senior notes exchange agreement