BBBY Stock (NASDAQ:BBBY)
This morning, shares of Bed Bath & Beyond (NASDAQ:BBBY) were rising after the ailing retailer announced the launch of a debt-exchange offer to improve liquidity and give the firm more time in its recovery. BBBY stock is up 3.2% as of 11:08 AM after rising as high as 6% earlier in the day.
Then What?
Bed Bath & Beyond (NASDAQ:BBBY) said in a news release this morning that investors may swap their 3.749% Senior Notes due in 2024 for 3.693% notes due in 2027 and/or new 8.821% Senior Second Lien Secured Convertible Notes likewise due in 2027. Notes due in 2034 and 2044 were also provided in return for the 2024 debt, which is the most pressing since it is the next maturity date the company must deal with. The risk of defaulting on such a loan increase if the company’s liquidity is not improved before that time.
Sue Gove, the company’s acting CEO, stated: “We plan to manage the potential effect of the 2024 maturity of our Senior Notes on our present and future operations by maintaining a strong emphasis on our Senior Notes. We think this deal will benefit all parties by providing more company stability and flexibility.”
What’s Next?
Bed Bath & Beyond burned through $809 million in free cash flow in the first half of the year as its sales plummeted. Even while BBBY stock anticipates a rise in that figure in the second half, it still must overcome several obstacles, such as postponing its debt maturity.
BBBY stock investors may be able to gauge the company’s ability to weather the present cash constraint based on the reaction of its creditors. According to the company’s most recent report, the retail stock’s outlook is bleak.
Featured Image- Megapixl @ Georgesheldon
Author Shariq Khan 
