- Bed Bath & Beyond Inc BBBY stock is down over 16% Thursday morning following its decision to offer shares and its disappointing Q4 preliminary figures.
- BBBY has entered into a common stock purchase agreement and a registration rights agreement with B. Riley Principal Capital II LLC for additional capital.
- The announcement is concurrent with a $300 million, new, At-The-Market offering program launched earlier today.
- Simultaneously, the company is terminating its previous public equity offering and all outstanding warrants for Series A convertible preferred stock associated with that offering.
- Also Read: Bed Bath & Beyond To Cut 1,300 Jobs In New Jersey
- The company plans to use potential net proceeds from these financing transactions immediately to fulfill conditions outlined in an amendment to its credit facility.
- “We have raised $360 million of equity capital since the beginning of February, cured our default under our credit agreement, repaid material amounts of our ABL facility, completed our interest payment for our Senior Notes, all while jumpstarting our turnaround plans,” said CEO Sue Gove.
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- Preliminary Results: The company also provided preliminary financial results for the fiscal 2022 fourth quarter, with net sales of approximately $1.2 billion (consensus $1.43 billion), comparable sales decline in the 40% to 50% range, continuation of negative operating losses, and modest free cash flow usage.
- The company has not yet completed its Q4 and full-year financial close and plans to provide its full results at the end of April 2023.
- Price Action: BBBY shares are trading lower by 16% at $0.68 on the last check Thursday.