Bed Bath & Beyond Creditors Seek Bond Swap to Boost Standing (1)

Advisers at Perella Weinberg Partners are corralling Bed Bath & Beyond Inc. bondholders in hopes of striking a deal with the company to exchange notes due 2024 for longer-dated securities, according to a person with knowledge of the efforts.

The proposal would aim to give the noteholders a second-lien claim on most or all company assets in exchange for the term extension, said the person, who asked not to be named discussing private negotiations.

The roughly $284 million of bonds pose a potential repayment problem for the embattled company. The retailer is flailing after several consecutive quarters of losses and ...