Bed Bath & Beyond makes last-ditch stock offering

Feb. 7 (UPI) -- After defaulting on its credit line last month, Bed Bath & Beyond announced Tuesday it is making a last-ditch stock offering and liquidation in an effort to prevent bankruptcy.

The troubled big box home retailer said it would get $225 million now and $800 million in proceeds down the road, giving it more than $1 billion in equity. Officials said it also received a $100 million loan from Sixth Street Partners.

"Under the amendment, the company will be required to use availability under its credit facilities to make the missed interest payment on its senior notes by March 3, 2023," Bed Bath & Beyond said in a statement.

The company told the Securities and Exchange Commission in late January that it defaulted on its credit line and that it did not have the money to pay its debts.

According to the SEC filing, the default happened around Jan. 13 and Bed Bath & Beyond owed more than $500 million to JP Morgan Chase and $375 million to Sixth Street.

The company said in its statement that if it fails to convince investors about its turnaround possibility and to purchase the stock options, it will "likely" be forced to file for bankruptcy.

The threat of bankruptcy is nothing new for Bed Bath & Beyond. It said on Jan. 5 that it may be forced into financial protection if the company concluded there was "substantial doubt" about the ability to continue as a going concern.