Bed Bath & Beyond Inc. Enters into Committed Equity Facility for Additional Funding
On March 30, 2023, Bed Bath & Beyond (Nasdaq: BBBY) announced a new At-The-Market offering to raise additional equity capital, totaling $360 million since February. Concurrently, the company terminated its previous equity offering and warrants for Series A Convertible Preferred Stock. The funds will be utilized to amend the credit facility and support strategic initiatives, including inventory investments and a streamlined store footprint. Preliminary fiscal 2022 Q4 results indicate net sales of approximately $1.2 billion, with comparable sales declining by 40% to 50%. The company's leadership aims to restore the Bed Bath & Beyond and buybuy BABY brands amidst ongoing financial challenges.
- Raised $360 million in equity capital since February.
- Plans to invest in high-demand merchandise inventory.
- On track to optimize 360 Bed Bath & Beyond stores by April.
- Comparable sales declined by 40% to 50%.
- Continuing negative operating losses.
- Modest free cash flow usage.
Builds on Recent Launch of New At-the-Market Offering
Terminates Previously Issued Warrants for Series A Convertible Preferred Stock
Provides Business Update
The potential net proceeds from these financing transactions will be used immediately to fulfill conditions set forth in an amendment to the Company's credit facility filed earlier today. The Company expects to utilize its amended credit facility to enable its strategic initiatives in fiscal 2023, such as investing in merchandise inventory, which will be further supported by a realigned store footprint and cost structure.
As of
In conjunction with today's business update, the Company is providing the following preliminary financial results for the fiscal 2022 fourth quarter (ended
Net Sales of approximately$1.2 billion - Comparable Sales decline in the
40% to50% range¹ - Continuation of negative operating losses
- Modest free cash flow usage
The Company has not yet completed its fiscal year 2022 fourth quarter and full year financial close and plans to provide its full financial results for the fiscal 2022 fourth quarter and full year at the end of
(1) | Comparable Sales reflects the year-over-year change in sales from the Company's retail channels, including stores and digital, that have been operating for twelve full months following the opening period (typically six to eight weeks). Comparable Sales excludes the impact of the Company's store network optimization program. |
About the Company
The Company operates websites at bedbathandbeyond.com and buybuybaby.com.
Non-GAAP Information
This release contains certain non-GAAP information, including Free Cash Flow. Non-GAAP information is intended to provide visibility into the Company's core operations and excludes special items, including non-cash impairment charges related to certain store-level assets and tradenames, loss on sale of businesses, loss on the extinguishment of debt, charges recorded in connection with the restructuring and transformation initiatives, which includes accelerated markdowns and inventory reserves related to the planned assortment transition to Owned Brands and costs associated with store closures related to the Company's fleet optimization and the income tax impact of these items. The Company's definition and calculation of non-GAAP measures may differ from that of other companies. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported GAAP financial results. The Company is not providing a reconciliation of its forward looking quarter ended
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 reflect the Company's current views with respect to, among other things, future events. 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 ability to obtain shareholder approval of a reverse split proposal, which is required to enable the Company to make full use of the ATM Program and any of the Committed Equity Facility; ATM Program and the Committed Equity Facility and the use of proceeds therefrom; the price of our Common Stock at any given time; risks related to the failure to receive the full amount of gross proceeds from the Company's financing transactions; the Company's ability to maintain access to its credit agreement; the Company's ability to deliver and execute on its turnaround plans; 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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