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Bed Bath & Beyond Eyeing $100M Raise

By Jennifer Bringle,


Bed Bath & Beyond added another potential $100 million to its turnaround effort with an amendment to its Series A stock offering. Under the amendment, Bed Bath & Beyond will adjust the price failure threshold to $1.00 until April 3. In addition, the threshold share amount referenced in the price failure definition is increased to 24,739.

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This amendment will further facilitate up to $100 million of additional funding in April, for a cumulative total of $460 million to date. Bed Bath & Beyond secured $225 million after hedge fund Hudson Bay Capital Management purchased the retailer’s initial offering of Series A shares, along with $800 million through the issuance of securities requiring the holder to purchase shares of Series A preferred stock in future installments. The company announced on March 8 that its equity offering had pulled in an additional $135 million in gross proceeds.

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“The funding we have raised over the past month has supported our ongoing operations and enabled us to begin reinvesting in valuable inventory to fulfill customer demand,” said Sue Gove , president and CEO, Bed Bath & Beyond. “We will continue to consider thoughtful and essential actions that can enhance our business operations and accelerate results for customers, associates, suppliers and shareholders over the long-term.”

So far, Bed Bath & Beyond has used the cash it raised to pay outstanding interest on loans. On Feb. 28, the retailer paid interest originally due on Feb. 1 on senior notes. Earlier this month, S&P Global Ratings upgraded Bed Bath & Beyond’s issuer credit rating to a CCC from a D. However, the agency said it still had a negative outlook for the troubled home goods retailer, due in part to its “poor track record of implementing successful strategic initiatives.”

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