Union, N.J. – Bed Bath & Beyond announced this morning that its equity offering has pulled in an additional $135 million in gross proceeds.
As of March 7, the company has raised a cumulative total of $360 million of the $1 billion it hopes to attain through its public offering of preferred stock warrants. Bed Bath said today that it has been using the money to repay outstanding revolving loans in order to boost its liquidity.
“Over the past month, we have been rebuilding our financial and operational positioning to execute our customer-focused turnaround plans,” said Sue Gove, president and CEO. “Since closing our equity financing last month, we have engaged with suppliers to improve our inventory positioning and we have continued to optimize our brick-and-mortar footprint through store closures to align with customer preference.”
Last week, the company paid the outstanding interest due on its senior notes, she added, “which has been acknowledged by key constituents such as credit agencies.”
On March 6, Bed Bath entered into a waiver on its credit agreement that waives certain defaults and covenants. The company is still required to repay its outstanding revolving loans with net cash proceeds and must submit a monthly budget to JPMorgan Chase Bank, its administrative agent, and Sixth Street Specialty Lending, its FILO agent.
“We continue to work with determination and diligence to fulfill both our near- and long-term goals of maximizing prospects for all stakeholders,” said Gove.