Bed Bath & Beyond seeks to improve liquidity, increase cash reserves

By Devika Patel

Knoxville, Tenn., Oct. 3 – Bed Bath & Beyond Inc. plans to improve its liquidity and increase cash reserves through certain financial changes.

“Enhancing liquidity is a top priority,” interim chief executive officer Sue Gove said on the company’s second quarter ended Aug. 27 earnings conference call on Sept. 29.

“We secured more than $500 million of new financing earlier this month.

“Our ongoing ATM program will also provide incremental liquidity.

“Organically, the financial changes we have deployed will also increase cash through our business.

“We have flattened our organization to reflect our more focused priorities driving greater efficiency and productivity,” Gove said.

Management is comfortable with the company’s current liquidity, which stands at $850 million, after repayments and borrowings that have occurred since the end of the second quarter.

“We are comfortable with our liquidity and our ability to drive our performance in the back half,” interim chief financial officer Laura Crossen said on the call.

On Aug. 31, the company announced that it had secured more than $500 million of new financing, including an expanded $1.13 billion asset-backed revolving credit facility and a new $375 million first in, last out facility.

The company is considering liability management transactions with particular focus on bonds maturing in 2024.

Transactions could be launched in the third quarter and could include offers to exchange current debt for new longer tenured debt or equity at exchange ratios related to the then-current value of the debt.

However, the transactions could take other forms or might not be launched at all.

Cash and cash equivalents were $135.27 million as of Aug. 27, 2022, compared to $439,496,000 as of Feb. 26, 2022 and $970,592,000 as of Aug. 28, 2021.

Long-term debt was $1,729,964,000 as of Aug. 27, 2022, compared to $1,179,776,000 as of Feb. 26, 2022 and $1,179,588,000 as of Aug. 28, 2021.

The chain of retail stores is based in Union, N.J.

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