Bed Bath & Beyond Says It Will Make Delayed Interest Payments

(Bloomberg) — Bed Bath & Beyond Inc. said it will pay past-due interest to bondholders on Feb. 28 as the troubled retailer catches up on overdue payments after a last-minute equity deal earlier this month.

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The company said in a statement that it has prefunded the full amount of interest that was due on Feb. 1 for holders of its senior notes. The retailer had been in a grace period since it missed those payments. Bed Bath & Beyond said in a separate regulatory filing on Tuesday that it was able to pay the interest after it received about $24 million as part of its equity-financing rescue package, which enables the company to try to raise as much as $1 billion in installments.

The pledge to make the overdue payments is “an important step in resetting our operational and financial foundation and meeting our commitments,” Bed Bath & Beyond Chief Executive Officer Sue Gove said in the statement. Last week, former Bed Bath & Beyond employees said they received their delayed severance pay.

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