Bed Bath & Beyond to Issue Stock in Exchange for Debt; Shares Fall
11:41 AM ET, 11/09/2022 - MT Newswires
11:41 AM EST, 11/09/2022 (MT Newswires) -- Bed Bath & Beyond (BBBY) said Wednesday it has entered into a privately negotiated exchange agreement with an existing holder of its 4.915% senior notes due 2034 and 5.165% senior notes due 2044.
The holder owns about $9.5 million of 2034 notes and $22.0 million of 2044 notes, the company said.
The retailer said it will issue about 2.8 million shares to the investor, consisting of 1.8 million shares in exchange for the notes, 100,000 shares to satisfy accrued and unpaid interest on the notes and 900,000 shares in exchange for a cash payment of $3.5 million from the holder.
The proceeds of the private placement will be used for general corporate purposes. The transaction is expected to close on or about Nov. 14, according to the company.
Bed Bath & Beyond shares fell 7.8% in recent morning trading Wednesday.
Price: 3.69, Change: -0.31, Percent Change: -7.79
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