Why Bed Bath & Beyond Stock Was Up Today
Shares of Bed Bath & Beyond (NASDAQ: BBBY) were moving higher today after the struggling retailer began a debt-exchange offer, with the aim of buying the company more time in its turnaround and improving liquidity. As of 11:08 a.m., Bed Bath & Beyond shares were up 3.2% after gaining as much as 6% earlier in the session.
In a press release this morning, Bed Bath & Beyond said it was offering several note exchanges, including a 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, also due 2027. It also offered exchanges for notes due in 2034 and 2044, though the 2024 debt is the most important, as that's the next maturity it faces. Without increased liquidity before then, the company could default on that debt.
Interim CEO Sue Gove said: "By proactively focusing on our Senior Notes, we also intend to address the maturity of our nearest-term 2024 Notes and any impact they may have on our current and future business. This transaction is intended to create greater stability and flexibility in our business, which we believe benefits all stakeholders."
Source Fool.com
