Bed Bath & Beyond Inc. selected asset manager Sixth Street Partners to supply new financing as doubts remain among vendors and some investors about the company’s turnaround prospects, the Wall Street Journal reported. Sixth Street is in exclusive talks with Bed Bath & Beyond and is nearing final terms for a loan of close to $400 million to shore up the troubled retailer’s liquidity, according to people familiar with the matter. Negotiations to finalize the loan documents are ongoing. The company told prospective lenders it had selected a proposal for an asset-based loan, A loan deal would help refill the company’s coffers and give confidence to vendors that Bed Bath & Beyond can pay its bills. The business has sought to stretch payments to some vendors, which have been pulling credit to the company in recent weeks amid mounting doubts that it could pay them back and a shortage of credit insurance. At least one firm that finances suppliers has stopped providing credit on shipments to Bed Bath & Beyond, the Journal has reported. The loan is structured as a first-in-last-out facility, meaning it is backed by collateral but will only be paid out after other secured debt in the event of bankruptcy, the people said. Sixth Street Partners manages $60 billion in assets, and has a retail lending practice that has made loans to retailers such as J.C. Penney Co. and DSW Inc.
