![]() In addition to being worried about Bed Bath & Beyond’s cash position and its ability to continue as a viable business, shareholders tend to hate it whenever a company issues more stock, which serves to depress the share price and make their holdings less valuable. With this latest deal, Bed Bath & Beyond is further diluting the holdings of its existing shareholders which is prompting many of them to hit the sell button on BBBY stock. The senior convertible note exchange is expected to close by Nov. Money raised from the private placement of common stock will be used to help shore up Bed Bath & Beyond’s finances, the company said. The deal specifies that Bed Bath & Beyond will issue $2.8 million worth of common stock to the existing holders, which would consist of 1.8 million shares in exchange for the notes. The company said it entered into the exchange agreement with an existing holding of 4.915% senior notes that come due in 2034 and 5.165% senior notes that are due in 2044. The stock now trades at $4 a share.īed Bath & Beyond has announced a privately negotiated senior notes exchange agreement and a simultaneous private placement of common stock as it races to improve its liquidity situation. ![]() ![]() Investors appear to be growing increasingly concerned about the Union, New Jersey-based company’s liquidity problems and efforts to remedy them.īBBY stock has fallen nearly 10% in the past five trading sessions, bringing its year-to-date loss to 74%. The senior convertible note deal comes days after Bed Bath & Beyond announced that it is issuing more shares in order to raise some much-needed cash. Shares of domestic merchandise retailer Bed Bath & Beyond (NASDAQ: BBBY) stock are trending today and down about 1% on news that the company is undertaking a senior convertible note deal to inject further liquidity into its operations and avoid a cash crunch.
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