Bed Bath & Beyond Finalizing $400 Million Loan With Sixth Street Partners

The retailer is in talks with asset manager Sixth Street Partners for a loan of about $400 million.


Michael M. Santiago/Getty Images



Bed Bath & Beyond

is in exclusive talks with asset manager Sixth Street Partners for a loan of about $400 million, The Wall Street Journal reported, citing people familiar with thematter.

Negotiations to finalize the loan, needed to shore up



Bed Bath & Beyond
’s

liquidity, are ongoing, one of the people told the Journal. The loan is structured as a first-in-last-out facility.

Bed Bath & Beyond (ticker: BBBY) shares closed with a gain of 18% on Wednesday after the Journal reported the troubled retailer gave the news to prospective lenders on Monday after a market process led by JPMorgan Chase.

The stock has fallen 29% this year. It has traded wildly the past two months, rising sharply as other “meme” stocks rallied but then fizzling after activist investor Ryan Cohen said he was selling his entire Bed Bath & Beyond stake.

The loan may ease fears about the company’s finances and reassure vendors that the retailer can pay its bills. Bed Bath & Beyond has sought to stretch payments to some vendors, which have been pulling credit to the company in recent weeks amid mounting doubts it could pay them back, the Journal reported.

Bed Bath & Beyond has sought to reassure the markets that it has been working to strengthen its balance sheet, saying in a filing last week that it has been “working expeditiously over the past several weeks with external financial advisors and lenders on strengthening our balance sheet, and the company will provide more information in an update at the end of this month.”

Write to Joe Woelfel at joseph.woelfel@barrons.com

Leave a Reply

Your email address will not be published. Required fields are marked *