Bed Bath & Beyond announces offering of Series A convertible preferred stock

Bed Bath & Beyond announced a proposed underwritten public offering of shares of the company’s Series A convertible preferred stock, warrants to purchase shares of Series A convertible preferred stock and warrants to purchase the company’s common stock. The company expects to raise approximately $225 million of gross proceeds in the offering together with an additional approximately $800M of gross proceeds through the issuance of securities requiring the holder thereof to exercise warrants to purchase shares of Series A preferred stock in future installments assuming certain condition are met. The company cannot give any assurances that it will receive any or all of the proceeds of the offering. The company intends to use the net proceeds from the initial closing of the offering, along with $100M to be drawn under its amended and upsized FILO Facility, to repay outstanding revolving loans under its ABL Facility in accordance with the terms of an amendment to the company’s credit agreement waiving existing defaults thereunder to be entered concurrently with the initial closing of the offering. Under the amendment, the company will be required to use availability under its credit facilities to make the missed interest payment on its senior notes by March 3. B. Riley Securities is acting as sole book-running manager for the offering.