Bed Bath & Beyond bonds up on new issuance, stock sinks; Rite Aid moves lower

By Cristal Cody

Tupelo, Miss., Feb. 7 – Bed Bath & Beyond Inc.’s bonds gained while its stock sank on Tuesday as the distressed retailer priced and closed a convertible preferred stock and warrants offering during the session.

Bed Bath & Beyond’s 5.165% senior notes due 2044 (C/D) added 5 points on Monday after the deal was announced and traded about 5 points higher on Tuesday with a 15 bid handle, sources said.

The company’s stock plunged 48.63% to $3.01 after climbing 92% on Monday.

Markets reversed course on Tuesday ahead of president Biden’s State of the Union address at 9 p.m. ET.

The CBOE Volatility index fell 4% to $18.66.

The iShares iBoxx High Yield Corporate Bond ETF rose 27 cents, or 0.36%, to $76.17.

Rite Aid Corp.’s paper saw a drop in the secondary market on Tuesday following a downgrade and dismal view from Moody’s Investors Service.

The drug retailer’s 8% senior secured notes due 2026 (Caa3/CCC-/CCC) were down 1 point at 56¼ bid on Tuesday and were later seen off ¾ point at 56½ bid, according to a market source.

The moves marked a reversal from Monday, when the bonds gained ½ point.

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