![]() ![]() The company has secured more than half a billion dollars in incremental liquidity last year and expanded its ABL facility to $1.13B, which is now getting repaid. Proceeds after costs are set to be used to repay Bed Bath & Beyond's ABL credit facility. The completion of the $1.0B equity offering is a clear success for Bed Bath & Beyond since the retailer was, despite considerable business challenges, capable of raising a significant amount of money for its restructuring efforts. The home-decor chain said a week ago that it was going to close 87 stores in a bid to optimize its store network and respond to falling revenues. ![]() The equity raise is complex and divided into two parts: the first part of the equity raise will see Bed Bath & Beyond receive $225M in proceeds, whereas the second part could result in $800M in payments in future installments, depending on certain conditions. BBBY, however, is a very high risk stock and investors should be aware that they could lose all of their money if the retailer can't be turned around! $1.0B equity offering indicates that investors believe in a turnaroundīed Bath & Beyond announced the completion of an equity offering in the amount of $1.0B earlier this week, which is buying the company more time to restructure its business and optimize its store footprint. ![]() I believe the market is overreacting to the equity offering and, considering that the retailer is the second-most shorted stock on Wall Street with a short interest ratio of 47%, I believe there is the possibility of another major short squeeze. Bed Bath & Beyond also announced a new round of store closures in a bid to lower its cash burn and focus on its restructuring. Struggling home-decor chain Bed Bath & Beyond ( BBBY) saw its share price collapse by 49% on Tuesday after the company announced the successful completion of a $1.0B equity offering. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |