Home Bed Bath & Beyond Extends Debt Exchange Into December
November 21, 2022
Bed Bath & Beyond Extends Debt Exchange Into December

By

As it continues efforts to refinance operations, Bed Bath & Beyond has announced that it has further extended its previously announced offers to exchange any and all of its outstanding senior notes.

The exchange would reflect certain changes made to the terms of the company’s new notes.

The extension includes offers to exchange:

  • 3.749% senior notes due 2024 for new 3.693% senior second lien secured non-convertible notes due 2027 and/or new 8.821% senior second lien secured convertible notes due 2027.
  • 4.915% senior notes due 2034 for new 12% senior third lien secured convertible notes due 2029.
  • 5.165% senior notes due 2044 for new third-lien convertible notes.

In connection with the exchange offers, Bed Bath & Beyond also is soliciting consent to amend the indenture governing the old notes.

Each of the exchange offers and consent solicitations, previously scheduled to expire at 11:59 p.m. Eastern Time on November 18, has been extended until 11:59 p.m., Eastern Time on December 5, the company stated.

In addition to the extension of the expiration time, Bed Bath & Beyond has made certain updates and changes to the terms of the new notes. As previously announced, Bed Bath & Beyond entered into privately negotiated exchanges with institutional holders of its old notes. In total, the existing holders exchanged approximately $69 million aggregate principal amount of 2024 notes, $15.3 million aggregate principal amount of 2034 Notes and $70.2 million aggregate principal amount of 2044 notes, plus accrued and unpaid interest on such notes, and in one case cash, for approximately 14.5 million shares of the company’s common stock.

In a secondary filling on November 16, Bed Bath & Beyond stated: If we are unable to complete the exchange offers or if we do not receive meaningful participation in the exchange offers, we will need to consider other alternatives available to us to deleverage and strengthen our balance sheet, including to address our nearer-term debt maturities. These alternatives may include (subject to market conditions) capital markets transactions, repurchases, redemptions, exchanges or other refinancings of our existing debt, the potential issuance of equity securities, the potential sale of additional assets and businesses and/or other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.

Pin It on Pinterest