Bed Bath & Beyond Inc. (NASDAQ: BBBY) noticed its stock price plummet Thursday, on announcing the successful completion of its previously disclosed financing agreements.
The Company has secured more than $500 million of new financing, including its newly expanded $1.13 billion asset-backed revolving credit facility and a new $375-million "first-in-last-out" facility.
The refinancing of the ABL facility was led by J.P. Morgan, and Sixth Street Partners is serving as the Lender and Agent for the Company's FILO facility. The enhanced liquidity is expected to be utilized to support immediate strategic priorities to drive traffic and sales and gain back customer relevance, including rebalancing the assortment and inventory position.
Sue Gove, Director & Interim Chief Executive Officer, commented, "Together with Sixth Street, J.P. Morgan and our banking partners, this new financing will bolster our liquidity and strengthen our balance sheet. We are pleased to announce this critical step in moving Bed Bath & Beyond in a positive direction by strengthening our financial positioning. We are committed to utilizing our resources to better serve our customers, drive growth, and recapture market share to deliver returns for all stakeholders."
Bed Bath & Beyond Inc. and subsidiaries is an omnichannel retailer that makes it easy for our customers to feel at home. The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets
BBBY shares dropped 68 cents, or 7.1%, to $8.85.
