Bed Bath & Beyond Inc. announced the pricing of three series of senior unsecured notes for an aggregate principal amount of $1.5 billion.
Of these notes, $300 million will mature in August 2024, were priced to yield and will bear interest at an annual rate of 3.749%; $300 million will mature in August 2034, were priced to yield and will bear interest at an annual rate of 4.915%; and $900 million will mature in August 2044, were priced to yield and will bear interest at an annual rate of 5.165%.
The offering is expected to close, subject to normal closing conditions, on July 17, 2014. The Company intends to use the proceeds from this offering for share repurchases of its common stock and for general corporate purposes.
The Company also announced it intends, subject to business and market conditions, to enter into an accelerated share repurchase agreement to repurchase an aggregate of $1.1 billion of the Company's common stock following the closing of the notes offering.
The Company has also announced that it is in discussions with lenders to enter into a $250 million senior unsecured revolving credit facility, expiring in 2019, unless extended pursuant to its terms.
