Matt Levine’s Money Stuff: Bed Bath & Beyond Got Its Deal Done

Bed Bath & cetera

We talked yesterday about Bed Bath & Beyond Inc.’s unusual rescue financing deal. Bed Bath was, apparently, a whisker away from filing for a messy bankruptcy, and was instead saved by a huge equity investment led by Hudson Bay Capital Management. The investors paid Bed Bath $225 million for some convertible preferred stock and warrants, and promised to put up another $800 million for more convertible preferred stock if things go well.

I suggested yesterday that the best way to understand this deal is not that Hudson Bay and friends are long-term equity investors in ...