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.
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.
“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.”