Hello fellow investors,
I want to update you about the Bed Bath & Beyond bond situation.
If you remember, end of August, I decided to expose myself to the $BBBY
Bond market, buying this bond:
Bed Bath&Beyond, 3.749% 1aug2024, USD
If you want more details about it, check my post on CS.
Anyway, the situation evolved, and BBBY is trying to get rid of this bond, pushing bondholders to swap it for a new bond expiring in 2027 or to a convertible bond. The goal is to issue new shares and pay bondholders with them.
Such an operation will help the company from a cash flow point of view cause they don't have to pay back the full amount in 2024. So, the price of that bond is increasing as investors see the light at the end of the tunnel.
I want the bond redeemed at 100%, so I will not swap it for another bond or share. Instead, I will stay at the window, hoping for a miracle from them to turn over the business correctly and pay back the bondholders in full.
Let's see 👍