Bed Bath & Beyond Inc.’s bondholders are organizing, looking to protect their investments in the struggling retailer as it looks for ways to ease its debt during a slump in sales, WSJ Pro Bankruptcy reported. Financing adviser Perella Weinberg Partners is working with holders of Bed Bath & Beyond’s unsecured notes due in 2024 ahead of debt talks expected to be held with the company. Bed Bath & Beyond said in its second-quarter results last week that it is considering launching a distressed exchange that would swap the outstanding bonds for new, longer-tenured debt or equity in the company, based on their trading prices. But the transactions could take other forms or might not be launched at all, the company said in a securities filing last week. Bed Bath & Beyond didn’t respond to a request for comment Monday. Bondholders are wary about a potentially coercive exchange deal that raises new secured debt but weakens other creditors’ claims on Bed Bath & Beyond’s assets. The company said last week that it had liquidity of about $850 million as of September, reflecting new loans it secured from its banks and from Sixth Street Partners after the quarter ended.
