UPDATE 2-Bed Bath & Beyond moves to raise $1 bln as bankruptcy clouds loom

(Adds details, background) Feb 6 (Reuters) - Bed Bath & Beyond Inc said on Monday it was planning to raise some $1 billion through an offering of preferred stock and warrants, a last-ditch effort to stave off bankruptcy. The move comes just weeks after the retailer said it had defaulted on a loan, raising concerns about its future.

Shares of the retailer, which closed up 92.1% at $5.86 in wild trading session, were down as much as 25% in extended trading.

Bed Bath said it was planning to raise about $225 million through an offering of Series A convertible preferred stock. An additional $800 million could be raised through people exercising warrants to buy common stock.

The embattled retailer said it would use the proceeds of the offering to repay outstanding revolving loans under its asset-based lending (ABL) facility. In January, the company raised doubts about its ability to continue as a going concern just months after it announced more than $500 million in new financing, as well as job cuts and 150 store closures.

Retailers in distress often look to bankruptcy protection after the holiday season to take advantage of the cash cushion provided by recent sales.

Bed Bath & Beyond said in January it had

defaulted on a loan from JPMorgan Chase Bank N.A. Bloomberg News

reported that the company's efforts to find a buyer had also stalled.

Prospective buyers sometimes wait until a company files for bankruptcy before agreeing to purchase assets, hoping to negotiate more favorable terms.

Sources

have told Reuters that Bed Bath & Beyond has lined up liquidators to close additional stores unless a last-minute buyer emerges.
(Reporting by Granth Vanaik; Editing by Anil D'Silva)

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

UPDATE 2-Bed Bath & Beyond moves to raise $1 bln as bankruptcy clouds loom

By Reuters

Reuters

Reuters

Gold has a path to $4,000 as U.S. credibility crumbles - WisdomTree’s Nitesh Shah

Why gold revaluation charts put prices at $25,000-$55,000 if history rhymes, silver poised for breakout: Crescat Capital Strategist

Whether 145% or 10%, tariff uncertainty is enough to stop U.S. gold and silver imports, distort the metals market at all levels – Experts

Gold price plummets as U.S.-China trade relations thawing

Gold price down a bit amid better risk appetite

off-the-wire

UPDATE 2-Bed Bath &amp; Beyond moves to raise $1 bln as bankruptcy clouds loom

By Reuters

Reuters

Reuters

UPDATE 2-Bed Bath & Beyond moves to raise $1 bln as bankruptcy clouds loom