Bed Bath & Beyond is making a proposal that it hopes investors won’t reject.
Seeking to unearth more than $1 billion in new cash, the company late yesterday announced a proposed offering of shares of its Series A convertible preferred stock, warrants to purchase shares of Series A convertible preferred stock and warrants to purchase the company’s common stock.
In the event that the offering is completed, BBB will be able to amend its credit agreement to waive any unresolved defaults or events of default under its current credit facilities. Additionally, its FILO agent, Sixth Street Specialty Lending, would release an additional $100 million in loans following the closing.
By March 3, the organization wants to combine the net proceeds from the offering’s initial closing with the $100 million needed to make up for a senior note interest payment that was missed. The Feb. 1 deadline was missed by Bed Bath & Beyond last week. 1 deadline for an interest payment of nearly $30 million on more than $1 billion in notes. The action triggered a 30-day grace period to get square.
Bed Bath’s total commitment to its revolving credit line would be reduced by the amendment from $1.13 billion to $565 million. The administrative agent under the company’s credit facility, JP Morgan, sent a notice of default and a demand for immediate payment to BBB on January 25.
The business told the SEC at the time that it lacked the money to pay back the debt on its credit facilities.
Source: furnituretoday.com
