Bed Bath & Beyond Inc. Announces Completion of ABL Facility Upsizing and New FILO Loan

Rhea-AI Summary

Bed Bath & Beyond (NASDAQ: BBBY) announced the successful completion of financing agreements, securing over $500 million in new financing. This includes a $1.13 billion expanded asset-backed revolving credit facility and a $375 million first-in-last-out facility, aimed at enhancing liquidity to support strategic priorities. CEO Sue Gove emphasized that this financing will strengthen the company's balance sheet, improve customer service, and drive growth to regain market share.

Positive

• Secured over $500 million in new financing.
• Expanded asset-backed revolving credit facility to $1.13 billion.
• New $375 million FILO facility enhances liquidity.

Negative

• None.

UNION, N.J., Sept. 1, 2022 /PRNewswire/ -- Bed Bath & Beyond Inc. (NASDAQ: BBBY) today announced the successful completion of its previously disclosed financing agreements. 

The Company has secured more than $500 million of new financing, including its newly expanded $1.13 billion asset-backed revolving credit facility ("ABL facility") and a new $375 million "first-in-last-out" facility ("FILO facility").  The refinancing of the ABL facility was led by J.P. Morgan, and Sixth Street Partners is serving as the Lender and Agent for the Company's FILO facility. The enhanced liquidity is expected to be utilized to support immediate strategic priorities to drive traffic and sales and gain back customer relevance, including rebalancing the assortment and inventory position.

Sue Gove, Director & Interim Chief Executive Officer, commented, "Together with Sixth Street, J.P. Morgan and our banking partners, this new financing will bolster our liquidity and strengthen our balance sheet.  We are pleased to announce this critical step in moving Bed Bath & Beyond in a positive direction by strengthening our financial positioning.  We are committed to utilizing our resources to better serve our customers, drive growth, and recapture market share to deliver returns for all stakeholders."

About the Company

Bed Bath & Beyond Inc. and subsidiaries (the "Company") is an omnichannel retailer that makes it easy for our 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 Mexico under the name Bed Bath & Beyond.

The Company operates websites at bedbathandbeyond.com, bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca, harmondiscount.com, and facevalues.com.

 

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SOURCE Bed Bath & Beyond

FAQ

What financing has Bed Bath & Beyond secured?

Bed Bath & Beyond has secured over $500 million in new financing, including a $1.13 billion expanded asset-backed revolving credit facility and a $375 million FILO facility.

What is the purpose of the new financing for BBBY?

The financing aims to enhance liquidity to support strategic priorities, drive sales, and improve customer relevance.

Who led the refinancing of Bed Bath & Beyond's ABL facility?

The refinancing of the ABL facility was led by J.P. Morgan.

What impact will the new financing have on BBBY's market position?

The financing is expected to strengthen the company's balance sheet and support efforts to regain market share.