The Washington Post

The financial lifeline that pulled Bed Bath & Beyond


from the brink of bankruptcy last month is already at risk because of the retailer’s tumbling stock price. The equity financing, led by hedge fund Hudson Bay Capital, provided the company with $225 million upfront, with the promise of another $800 million over the coming eight months. Yet the additional cash has strings attached. Among them: Future injections are contingent on Bed Bath & Beyond maintainin­g a weighted average stock price of at least $1.25 or $1.50, depending on the timing, according to a regulatory filing. The deal terms allow Hudson Bay to waive those conditions if it wants. But keeping the stock price above those thresholds may not be easy. It has already tumbled over 70 percent since Feb. 6.

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