![]() The $225 million of senior unsecured 20-year notes that Bed Bath & Beyond issued in 2014, due in 2034, with a coupon interest of 4.915%, collapsed to a new low of 16 cents on the dollar today. And the bond market knows that a lot better than the meme-stock crowd. Not being able to pay suppliers is getting very close to the endgame. The suppliers also complained that “management is short on guidance about its plans to catch up with its past-due bills,” according to Bloomberg, citing the survey it had seen.Īlso according to Bloomberg, based on its sources, several firms that provide trade credit insurance to vendors have revoked coverage of Bed Bath & Beyond. On Friday, Bloomberg reported that a survey of vendors, undertaken by credit-rating and consulting firm Pulse Ratings, had found that Bed Bath & Beyond had fallen behind as much as 90 days on its bills.Īll respondents had past-due accounts receivable with Bed Bath & Beyond, and some said that over half of their accounts receivable with Bed Bath & Beyond were past due. But with this yield, the bond market is signaling that a default and a bankruptcy filing are imminent, with a massive haircut for unsecured bondholders (chart by FINRA/Morningstar): That would be a yield to maturity of 33%, assuming that the company pays the interest for the life of the bond and doesn’t default, and at maturity pays off the bond. The $675 million of senior unsecured 30-year bonds that meme-stock darling Bed Bath & Beyond issued in 2014, and that are due in 2044, with a coupon interest of 5.165%, collapsed to a new closing low of 15.8 cents on the dollar today, with some trades being below 15 cents, after having plunged all last week from the meme-stock inspired dead-cat bounce. ![]() ![]() Their b illionaire hedge-fund hero, who might have known about the unpaid bills, got out in time. Meme-stock crowd got crushed, s hares collapsed 69% in four days.
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