Bed Bath & Beyond Reaches Debt-for-Equity Deal With Bondholder

Bed Bath & Beyond Inc. said it reached a privately negotiated exchange agreement with an existing bondholder to swap $31.5 million of bond principal for equity.

An existing holder of $9.5 million of Bed Bath & Beyond’s 4.915% senior notes due 2034 and $22 million of the retailer’s 5.165% bond due 2044 will swap the obligations for 2.8 million shares of common stock.

Bed Bath & Beyond is issuing 1.8 million new shares in exchange for the bonds, plus another 100,000 shares to cover accrued and unpaid interest. It’s also issuing 900,000 shares to the undisclosed holder for $3.5 million ...