Benzinga | Aug 9, 2021 04:18PM EDT

Bed Bath & Beyond Improves Terms, Increases Flexibility & Extends Asset-Based Revolving Credit Facility From $850M To $1B

Bed Bath & Beyond Inc. (NASDAQ:BBBY) today announced it has amended its asset-based revolving credit facility ("ABL Facility"). The revised and expanded ABL Facility increases the Company's capacity from $850 million to $1.0 billion with improvements to borrowing terms and financial covenants. Among other things, this amendment reflects an improved cost structure and the amended agreement extends the original expiration date of 2023 to 2026.

Gustavo Arnal, Executive Vice President and Chief Financial Officer of Bed Bath & Beyond, stated, "We are pleased to have secured a larger and more advantageous facility based on the continued progress of our transformation. While our liquidity has remained strong throughout the past year, we appreciate the increased support from our banking partners. This revised ABL Facility underscores their confidence in our business as we execute our long-term strategies. We will continue to strengthen our balance sheet and remain diligent stewards of capital allocation, leveraging our enhanced financial position to execute our business transformation."

The amendment is effective August 9, 2021.