It’s been a rough few months for Bed Bath & Beyond (NASDAQ:BBBY). The beleaguered home goods retailer continues its work on a comeback plan in the midst of some increasingly sour economic conditions. There are signs, however, that those efforts aren’t working out to anyone’s satisfaction. Perhaps least of all for shareholders. Bed Bath & Beyond shares were down more than 3% in afternoon trading.
The company announced that it was once again extending the time frame for offers to exchange outstanding Senior Notes.
The latest exchange calls for holders of Senior Notes due in 2024 to exchange that debt for new Second Lien Non-Convertible Notes. The Senior Notes due in 2024 come with an interest rate of 3.749%, while the new Second Lien notes come with a 3.693% interest.
Debtholders can also opt for the Senior Second Lien Secured Convertible Notes due in 2027, which offer an interest rate of 8.821%.
Essentially, the move demonstrates how little interest there is in debtholders taking on debt from Bed Bath & Beyond. The company has already removed one CEO, Mark Tritton, who was considered a “turnaround CEO.” Meanwhile, the latest CEO—Sue Gove—isn’t delivering a lot of hope either.
Sales and cash flows are in open decline as store traffic looks a lot less like a “freeway” and a lot more like a “country lane.” Thus, taking on debt from Bed Bath & Beyond at any interest rate isn’t looking like a charming prospect to most of the market.
Overall, Wall Street analysts have a consensus price target of $4.70 on BBBY stock with a Moderate Sell consensus rating, as indicated by the graphic above.
