Bed Bath & Beyond to issue common stock to buy back debt
Shares of Bed Bath & Beyond Inc. fell 0.5% in premarket trading Wednesday, after the home goods retailer announced an agreement to issue common stock to buyback debt with a total principal amount of $31.5 million. The company said it will issue 2.8 million shares, which based on Tuesday's stock closing price of $4.00 would be valued at $11.2 million. The company will also receive $3.5 million in cash from the debt holder. The debt being cancelled are $9.5 million principal amount of 4.915% senior notes due 2034 and $22.0 million in 5.165% senior notes due 2044. "Today's announcement outlines a strong framework and compelling opportunity to improve our balance sheet and liquidity by reducing long-term debt, lowering interest expense, and adding an infusion of new capital for equity," said Chief Executive Sue Gove. The former "meme" stock had gained 1.3% on Tuesday to snap a nine-day losing streak, in which it tumbled 25.3% to close Monday at a 2 1/2-year low. The stock has plummeted 59.1% over the past three months through Tuesday, while the S&P 500 has lost 7.1%.
-Tomi Kilgore
(END) Dow Jones Newswires
November 09, 2022 07:50 ET (12:50 GMT)
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