Bed Bath & Beyond Inc. Announces Proposed Offering of Series A Convertible Preferred Stock and Warrants
On February 6, 2023, Bed Bath & Beyond (Nasdaq: BBBY) announced a proposed underwritten public offering involving Series A convertible preferred stock and associated warrants, aiming to raise approximately $225 million. The company plans to use proceeds to repay outstanding loans under its ABL Facility and to make a missed interest payment on senior notes by March 3, 2023. The offering's completion is subject to market conditions, and there are no assurances it will be finalized. Additionally, the company may face bankruptcy if the offering does not close successfully, intensifying financial risks.
- Proposed offering could raise approximately $225 million.
- Intended to repay outstanding loans, potentially improving liquidity.
- Offering's completion is uncertain, posing financial risks.
- Potential bankruptcy if offering does not close.
The Company intends to use the net proceeds from the initial closing of the Offering, along with
B.
The securities are being offered pursuant to an automatically effective shelf registration statement on Form S-3 filed with the
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
About the Company
The Company is an omnichannel retailer that makes it easy for its customers to feel at home. The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words such as "expect," "will," "working," "plan" and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the Company's beliefs and expectations relating to the closing of the Company's anticipated Offering and the anticipated use of proceeds of the Offering. These forward-looking statements are not guarantees of future results and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control. Important factors that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the uncertainties related to market conditions and the completion of Offering on the anticipated terms or at all, the Company's ability to use proceeds from the Offering to pay down outstanding debt obligations and operate its business; risks related to the failure to consummate the Offering, which the Company expects will likely force it to file for bankruptcy protection; the Company's ability to regain access to its credit agreement; the Company's ability to deliver and execute on its turnaround plan; the Company's potential need to seek additional strategic alternatives, including restructuring or refinancing of its debt, seeking additional debt or equity capital, reducing or delaying its business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the
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FAQ
What is Bed Bath & Beyond's proposed offering on February 6, 2023?
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