Bed Bath & Beyond
has successfully closed its equity offering, the company said Tuesday.
Bed Bath (ticker: BBBY) received initial proceeds of approximately $225 million in the offering and expects to receive an additional $800 million in future installments. The company first announced the offering on Monday.
The proceeds will be used immediately to repay outstanding loans, the company said. The offer’s completion means that Bed Bath can enter into a new agreement with creditors, which waives any outstanding defaults and rescinds requests for the company to repay the loans in full immediately.
“This transformative transaction will provide runway to execute our turnaround plan,” said CEO Sue Gove in a statement.
As part of the plan, Bed Bath is closing stores, investing in inventory, and improving its supply chain. On Monday, Bed Bath said it was closing 150 stores in addition to previously announced store closures. The company has an ultimate goal of operating approximately 360 stores and 120 buybuy Baby stores in its most profitable locations, Bed Bath said on Tuesday.
Shares of Bed Bath rose 1% to $3.04 in after-hour trading.
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