Shares of Bed Bath & Beyond Inc.
BBBY,
sank 3.6% toward a record low in morning trading Thursday, after the troubled home goods retailer said it launched an at-the-market offering to sell up to $300 million worth of its common stock. That compares with the company’s current market capitalization of $90.3 million. B. Riley is the sales agent for the offering. Bed Bath also disclosed that it has entered into a stock purchase agreement with B. Riley Principal Capital II to provide additional capital to the company. “The actions we’ve taken have enabled us to create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses.,” said Chief Executive Sue Gove. “We have raised $360 million of equity capital since the beginning of February, cured our default under our credit agreement, repaid material amounts of our ABL facility, completed our interest payment for our Senior Notes, all while jumpstarting our turnaround plans.” The stock, which was headed for a ninth-straight close below the $1 mark, has plummeted 69.1% year to date, while the S&P 500
SPX,
has gained 5.6%.