Bed Bath & Beyond announced it has entered into a second round of privately negotiated exchange agreements with several existing institutional note holders in a move to reduce long-term debt.
The latest agreement exchanging debt for stock includes holders of its 3.749% Senior Unsecured Notes due 2024, 4.915% Senior Notes due 2034 and 5.165% Senior Notes due 2044, resulting in the collective exchange of $69 million aggregate principal amount of 2024 notes — those being all of the existing holders’ beneficially owned 2024 notes — $5.8 million aggregate principal amount of 2034 notes and $48.2 million aggregate principal amount of 2044 notes.
Pursuant to the exchange agreements, Bed Bath & Beyond will issue an aggregate of approximately 11.7 million shares of common stock in exchange for the notes, including accrued and unpaid interest. The closing of the transaction will effectively cancel the notes, which will no longer count as outstanding. The company expects the transaction to close on or about November 16, the company stated.
In announcing the transaction, Sue Gove, Bed Bath & Beyond president and CEO said, “Building on our bond exchange transaction from last week, we are pleased to announce additional progress towards greater financial flexibility, with further reduction of our long-term debt, particularly our nearest-term 2024 Notes. Our entire organization is focused on executing our customer-focused priorities of improved assortment and supply as we enter the peak holiday selling season, and driving our business with highly engaged teams, which now includes our new chief marketing and customer officer who started with us today.”