Bed Bath & Beyond's stock falls as retailer plans to issue shares to pay off some debt

Bed Bath & Beyond said Monday it would contented shares to immoderate of its bondholders successful speech for paying disconnected a tiny information of its astir $1 cardinal indebtedness load.

Bed Bath & Beyond's shares fell much than 8% astatine astir $3.60 connected Monday pursuing the announcement of its banal dilution. The stock, which is down much than 70% truthful acold this year, deed a caller 52-week debased Monday.

In summation to its upland of debt, the troubled retailer has precocious been grappling with a enactment shakeup, strained relationships with suppliers and the aftermath of a meme-stock frenzy fueled by activistic capitalist Ryan Cohen, who aboriginal sold his shares.

Bed Bath & Beyond has much than $1 cardinal successful unsecured notes with maturity dates dispersed crossed 2024, 2034 and 2044.

On Monday, Bed Bath & Beyond said it would issue 11.7 cardinal successful banal to wage disconnected $123 cardinal – astir $69 cardinal of the 2024 notes, $5.8 cardinal of the 2034 notes and $48.2 cardinal of the 2044 notes. The unsecured notes person each been trading beneath par.

In August, Bed Bath & Beyond announced new indebtedness funding that was expected to springiness it immoderate enactment room, particularly with suppliers.

The retailer has been warring to triumph backmost customers up of what could beryllium a make-or-break vacation season.

Earlier this month, the company's chief lawsuit serviceman resigned, the latest successful a database of enactment changes for Bed Bath & Beyond. Earlier this year, the committee pushed retired Chief Executive Mark Tritton and Chief Merchandising Officer Joe Hartsig. Meanwhile, its main accounting serviceman resigned and the institution eliminated the main operating serviceman and main stores serviceman roles. In September, CFO Gustabo Arnal died by suicide.