Bed Bath & Beyond was upgraded to CC from SD by S&P after its distressed debt exchange was terminated as the conditions of the offer were not satisfied. Thus, now $215mn of the company’s senior notes due August 2024 remain outstanding, alongside other bonds due 2034 and 2044. S&P had downgraded the company to SD from CC in November upon its distressed debt exchange program which it considered to be tantamount to default. With the American retailer reeling under debts, falling revenues and a high cash burn, its bonds dropped sharply after it warned of filing for bankruptcy, debt restructuring or asset sales.
Bed Bath’s bonds are now trading at 5-7 cents on the dollar, from over 20 cents on the dollar when the year began.