It also reflects governance considerations including the appointment of interim senior management and hiring consultants to support Bed Bath in its efforts deliver on its operational turnaround, which include inventory, cash management and balance sheet optimization. Outlook, Changed to Stable from Negativeīed Bath's Ca corporate family rating reflects the very high likelihood of a default over the next twelve months. Speculative Grade Liquidity Rating, Upgraded to SGL-3 from SGL-4 Senior Unsecured Regular Bond/Debenture, Downgraded to C (LGD5) from Caa3 (LGD5) Probability of Default Rating, Downgraded to Ca-PD from Caa2-PD Corporate Family Rating, Downgraded to Ca from Caa2 The ABL expires in August 2026 but its maturity will spring to if more than $50 million of the 2024 notes are still outstanding on such date. Inventory levels, although improving, are still misaligned with sales trends and private label product continues to be cleared and replaced with national brands in the face of weak consumer demand. The proceeds from the FILO and equity issuance were used to both reduce borrowings under the ABL as well as to increase cash balances which provides the company with adequate liquidity to meet its expected free cash flow deficits over the next twelve months. The upgrade to SGL-3 from SGL-4 reflects actions that has taken to improve its liquidity including increasing its asset based revolving credit facility (unrated) to $1.13 billion from $1 billion, raising a $375 million first in-last-out term loan facility (FILO) and an equity issuance of approximately $30 million. "The downgrades reflects governance considerations which include the company's announcement that it may pursue liability transactions which Moody's would likely view as a distressed exchange to address its $284 million of senior unsecured notes due in August 2024 in light of the continuing pressures on Bed Bath's operations and credit metrics" said Christina Boni, Senior Vice President. ![]() The outlook was changed to stable from negative. The speculative grade liquidity rating was upgraded to SGL-3 from SGL-4. New York, Octo- Moody's Investors Service ("Moody's") downgraded Bed Bath & Beyond Inc.'s ("Bed Bath") corporate family rating ("CFR") to Ca from Caa2, its probability of default rating to Ca-PD from Caa2-PD and its senior unsecured notes rating to C from Caa3.
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