# EDGAR Filing Document

**Accession Number:** 0000886158
**File Stem:** 0000000000-23-001818
**Filing Date:** 2023-2
**Character Count:** 24932
**Document Hash:** fe1669cc2234ed45438143af00ba0b48
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-001818.hdr.sgml**: 20230621

**ACCESSION NUMBER**: 0000000000-23-001818

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230223

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BED BATH & BEYOND INC
- **CENTRAL INDEX KEY:** 0000886158
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700]
- **IRS NUMBER:** 112250488
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 650 LIBERTY AVENUE
- **CITY:** UNION
- **STATE:** NJ
- **ZIP:** 07083
- **BUSINESS PHONE:** 908-688-0888

**MAIL ADDRESS:**
- **STREET 1:** 650 LIBERTY AVENUE
- **CITY:** UNION
- **STATE:** NJ
- **ZIP:** 07083
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001193125-23-025748

## Text-Extract

```

United States securities and exchange commission logo

                             February 23, 2023

       Sue Gove
       Chief Executive Officer
       BED BATH & BEYOND INC
       650 Liberty Avenue
       Union, New Jersey 07083

                                                        Re: BED BATH & BEYOND
INC.
                                                            Preliminary
Prospectus Supplement
                                                            Filed February 6,
2023, as updated February 9, 2023
                                                            File No. 333-
267173

       Dear Sue Gove:

               We have reviewed your preliminary prospectus supplement and
issuer free writing
       prospectus and have the following comments. Although you have
consummated the initial
       offering, we believe that investors may benefit from revised disclosure
in response to our
       comments. Please update your disclosure, as appropriate, in response to
these comments in your
       Securities Act offering materials and ongoing Exchange Act filings.

       Preliminary Prospectus Supplement dated February 6, 2023, updated
February 9, 2023

       Cover Page

   1.                                                   We note your disclosure
on page S-8 that    [t]he investors in this offering may potentially
                                                        make a significant
profit with the resale of the securities they purchase in this offering
                                                        depending on the
trading price of [y]our securities at the time of a sale and the purchase
                                                        price of such
securities by them,    and that    [w]hile the investors in this offering may
                                                        experience a positive
rate of return based on the trading price of [y]our securities, the
                                                        existing holders of
[y]our common stock may not experience a similar rate of return on the
                                                        shares of common stock
they purchased due to differences in the applicable purchase price
                                                        and trading price.
Please provide comparable disclosure here and revise to clarify that
                                                        investors will have the
ability to acquire the common shares underlying the securities
                                                        issued in this offering
at a discount to the market price, so long as the market price does
                                                        not fall below $0.7160.
   2.                                                   Revise to state, as you
do on pages S-3 and S-8, that if the Transactions are not
                                                        consummated, the
company expects it will likely file for bankruptcy protection, and
                                                        investors will likely
receive no recovery for any of the securities offered by this
                                                        registration statement.
 Sue Gove
FirstName
BED BATHLastNameSue
            & BEYONDGove
                       INC
Comapany23,
February  NameBED
            2023   BATH & BEYOND INC
February
Page 2 23, 2023 Page 2
FirstName LastName
"Future issuances of equity or debt securities by us may adversely affect the
market price of our
common stock"

3.       We note your disclosure that you    believe [you] will have 900.0
million shares of
         common stock outstanding immediately after this offering and giving
effect to the
         exercise or conversion, as applicable . . . .    Please revise to
provide a reasonable basis for
         such disclosure and in particular explain why you are assuming the use
of the Conversion
         Price of $6.15 in your estimate. To balance your estimate of 900.0
million shares and
         provide shareholders with a more complete picture of your outstanding
share count, please
         also quantify the expected outstanding number of shares assuming
conversion of the
         Series A Convertible Preferred Stock issued and outstanding as well as
such shares
         underlying the Preferred Stock Warrants, based on Alternative
Conversions Prices of both
         $0.7160 and 92.0% of the lowest VWAP of your common stock for the
applicable ten day
         period. Revise using the trading price of the latest practicable date.
4.       Please elaborate upon the risk you discuss here as it relates to
sufficient authorized shares
         of common stock for future tranches to specify how much capacity
remains and what your
         intentions are, if any, as it relates to seeking shareholder approval
to amend your charter.
         Please explain the consequences if you cannot obtain stockholder
approval. Also,
         counsel   s legal opinion, attached as an exhibit to your current
report on Form 8-K filed
         February 7, 2023, appears to omit to opine as to the common stock to
be issued pursuant
         to the Preferred Stock Warrants and Common Stock Warrants, as well as
the Series A
         Convertible Preferred Stock to be issued pursuant to the Preferred
Stock Warrants, even
         though such securities were registered. Please revise or advise.
"Nasdaq may delist our common stock from quotation on its exchange..."

5.       We note your disclosure that if    Nasdaq considers that the offering
contemplated hereby
         does not qualify as a    public offering,    [y]our common stock may
be suspended and/or
         delisted. Please supplementally explain why your offering should be
considered a    public
         offering    for the purpose of the Nasdaq listing standards. Please
tell us whether this
         matter was discussed with Nasdaq and the outcome of those discussions.
If such
         discussions occurred, please provide the name of the Nasdaq
representative.
"The issuance of the securities in this offering will significantly dilute the
ownership interest of
the existing holders..."

6.       We note your disclosure that    [y]our public float will be
significantly increased and the
         market price of [y]our common stock could decline significantly as a
result of subsequent
         sales of the shares of common stock issued in this offering, which
could occur at any time,
         or the perception that such sales may occur.    To provide investors
with a complete
         picture of how this offering may impact your public float and the
related dilution risks,
         please disclose the total amount of underlying common shares that may
be issued as a
         result of this offering, and quantify what percentage such shares
would constitute of your
         public float assuming the resale of all such shares. Provide
comparable disclosure in your
 Sue Gove
FirstName
BED BATHLastNameSue
            & BEYONDGove
                       INC
Comapany23,
February  NameBED
            2023   BATH & BEYOND INC
February
Page 3 23, 2023 Page 3
FirstName LastName
         risk factor on page S-16 entitled    The market price of our common
stock could decline . . .
         ,    so as to highlight the significant negative impact sales of such
shares could have on the
         public trading price of your common stock, and also discuss there the
risk that investors
         may further purchase the    [s]hares having an aggregate offering
price of $105.6 million
         [which] remained unsold under the ATM program as of the end of fiscal
December 2022,
         as disclosed on page 34 of your current report on Form 10-Q filed
January 26, 2023.
7.       Please explain how the investors    in this offering may potentially
make a significant profit
         with the resale of the securities they purchase    by explaining and
quantifying the discount
         associated with the conversion feature of the Series A Convertible
Preferred Stock you
         issued. In particular, explain and quantify the discount to be
received by    the holder that
         purchased at least 20,000 shares of Series A Convertible Preferred
Stock in this offering
         whom you discuss on page S-24.
"Trading in our securities is highly speculative, and we may be required to
file for bankruptcy
protection..."

8.       Please revise this risk factor to clarify your reference to    equity
holders    and distinguish
         between holders of common stock and the overlying equity you issued in
this offering.
Issuer Free Writing Prospectus dated February 7, 2023, filed February 7, 2023

9.       Please revise to explain how you arrived at the Alternate Conversion
Price of $2.3727 and
         also explain how you used such price to arrive at the number of Common
Stock Warrants
         issued in this offering. In this regard, we note your disclosure that
the number of
         Common Stock Warrants issued in this offering depends in-part on
the Alternate
         Conversion Price (as measured as of the date of pricing of this
Offering).
10.      We note that your Pricing Term Sheet discloses that, using an
Alternate Conversion Price
         of $2.3727, there would be 99,822,986 shares of Common Stock
underlying the 23,685
         shares of Series A Convertible Preferred Stock issued, as well as
95,387,533 shares of
         common stock underlying the 95,387,533 Common Stock Warrants issued.
However, you
         do not appear to disclose the number of common shares that ultimately
underlie the
         84,216 Preferred Stock Warrants; please disclose such amount.
Prospectus Supplement Summary

11.      We note your disclosure that you    will be required to use
availability under [your] Credit
         Facilities to make the Notes Interest Payment by March 3, 2023,    as
well as your
         disclosure that you    may continue to borrow under [your] ABL
Facility subject to
         availability thereunder.    Please revise your disclosure to provide
investors with a
         complete picture of how the proceeds of this offering were used, your
upcoming payment
         obligations, including the upcoming interest payment due on the Senior
Notes, and any
         available capacity under the Credit Facilities, including a more
detailed discussion of the
            additional operational covenants    agreed upon pursuant to the
Amended Credit
         Agreement and how such covenants will impact such capacity.
 Sue Gove
BED BATH & BEYOND INC
February 23, 2023
Page 4
12.      With a view to understanding the amount and use of future proceeds to
be received from
         the sale of securities in this offering, please quantify the amount of
proceeds that you may
         raise on or shortly after February 27, 2023 by requiring certain
holders to exercise the
         maximum permissible amount of preferred stock warrants at such time,
and discuss the
         extent to which you may rely upon such forced exercise to satisfy your
upcoming payment
         obligations. Last, explain under what circumstances you can force an
exercise, and also
         quantify the expected amounts to be received and at what corresponding
time over the
         next ten months.
Risk Factors
"If the Transactions are not consummated, we expect that we will likely file
for bankruptcy
protection"

13.      Please revise to provide a more detailed discussion of the extent that
you may rely upon
         proceeds from future forced exercises to avoid bankruptcy, and whether
you will likely
         utilize total possible proceeds in an amount to exceed $1 billion,
with a view to clarifying
         your reference to    fully    consummating the Transactions. In your
disclosure, please
         revise to narratively discuss the price and volume limitation
conditions to raising proceeds
         in multiple subsequent closings.
Use of Proceeds

14.      We note your disclosure that    proceeds from the exercise of Series A
Convertible
         Preferred Stock Warrants will be used to further repay outstanding
amounts under the
         ABL Facility with 50% of such exercise amounts being applied against
the borrowing
         base of the ABL Facility.    Please revise to disclose that such use
of proceeds does not
         apply to proceeds raised    in connection with the first and second
Forced Exercise Dates,
         as you disclose on page S-2. Make conforming changes on page S-5.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       Please contact Brian Fetterolf at (202)-4551-6613 or Mara Ransom at
202-551-3264 with
any other questions.

FirstName LastNameSue Gove                                     Sincerely,
Comapany NameBED BATH & BEYOND INC
                                                               Division of
Corporation Finance
February 23, 2023 Page 4                                       Office of Trade
& Services
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

DIVISION OF
CORPORATION FINANCE

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

February 23, 2023

Sue Gove
Chief Executive Officer
BED BATH & BEYOND INC
650 Liberty Avenue
Union, New Jersey 07083

Re: BED BATH & BEYOND INC.

Preliminary Prospectus Supplement

Filed February 6, 2023, as updated February 9, 2023

File No. 333- 267173

Dear Sue Gove:

We have reviewed your preliminary prospectus supplement and issuer free writing prospectus and have the following comments. Although you have consummated the initial offering, we believe that investors may benefit from revised disclosure in response to our comments. Please update your disclosure, as appropriate, in response to these comments in your Securities Act offering materials and ongoing Exchange Act filings.

Preliminary Prospectus Supplement dated February 6, 2023, updated February 9, 2023

Cover Page

1. We note your disclosure on page S-8 that "[t]he investors in this offering may potentially make a significant profit with the resale of the securities they purchase in this offering depending on the trading price of [y]our securities at the time of a sale and the purchase price of such securities by them," and that "[w]hile the investors in this offering may experience a positive rate of return based on the trading price of [y]our securities, the existing holders of [y]our common stock may not experience a similar rate of return on the shares of common stock they purchased due to differences in the applicable purchase price and trading price." Please provide comparable disclosure here and revise to clarify that investors will have the ability to acquire the common shares underlying the securities issued in this offering at a discount to the market price, so long as the market price does not fall below $0.7160.
2. Revise to state, as you do on pages S-3 and S-8, that if the Transactions are not consummated, the company expects it will likely file for bankruptcy protection, and investors will likely receive no recovery for any of the securities offered by this registration statement.

Sue Gove
BED BATH & BEYOND INC
February 23, 2023
Page 2

"Future issuances of equity or debt securities by us may adversely affect the market price of our common stock"

3. We note your disclosure that you "believe [you] will have 900.0 million shares of common stock outstanding immediately after this offering and giving effect to the exercise or conversion, as applicable . . . ." Please revise to provide a reasonable basis for such disclosure and in particular explain why you are assuming the use of the Conversion Price of $6.15 in your estimate. To balance your estimate of 900.0 million shares and provide shareholders with a more complete picture of your outstanding share count, please also quantify the expected outstanding number of shares assuming conversion of the Series A Convertible Preferred Stock issued and outstanding as well as such shares underlying the Preferred Stock Warrants, based on Alternative Conversions Prices of both $0.7160 and 92.0% of the lowest VWAP of your common stock for the applicable ten day period. Revise using the trading price of the latest practicable date.

4. Please elaborate upon the risk you discuss here as it relates to sufficient authorized shares of common stock for future tranches to specify how much capacity remains and what your intentions are, if any, as it relates to seeking shareholder approval to amend your charter. Please explain the consequences if you cannot obtain stockholder approval. Also, counsel's legal opinion, attached as an exhibit to your current report on Form 8-K filed February 7, 2023, appears to omit to opine as to the common stock to be issued pursuant to the Preferred Stock Warrants and Common Stock Warrants, as well as the Series A Convertible Preferred Stock to be issued pursuant to the Preferred Stock Warrants, even though such securities were registered. Please revise or advise.

"Nasdaq may delist our common stock from quotation on its exchange..."

5. We note your disclosure that if "Nasdaq considers that the offering contemplated hereby does not qualify as a 'public offering,' [y]our common stock may be suspended and/or delisted. Please supplementally explain why your offering should be considered a 'public offering' for the purpose of the Nasdaq listing standards. Please tell us whether this matter was discussed with Nasdaq and the outcome of those discussions. If such discussions occurred, please provide the name of the Nasdaq representative.

"The issuance of the securities in this offering will significantly dilute the ownership interest of the existing holders..."

6. We note your disclosure that "[y]our public float will be significantly increased and the market price of [y]our common stock could decline significantly as a result of subsequent sales of the shares of common stock issued in this offering, which could occur at any time, or the perception that such sales may occur." To provide investors with a complete picture of how this offering may impact your public float and the related dilution risks, please disclose the total amount of underlying common shares that may be issued as a result of this offering, and quantify what percentage such shares would constitute of your public float assuming the resale of all such shares. Provide comparable disclosure in your

Sue Gove
BED BATH & BEYOND INC
February 23, 2023
Page 3

risk factor on page S-16 entitled “The market price of our common stock could decline . . . ,” so as to highlight the significant negative impact sales of such shares could have on the public trading price of your common stock, and also discuss there the risk that investors may further purchase the “[s]hares having an aggregate offering price of $105.6 million [which] remained unsold under the ATM program as of the end of fiscal December 2022,” as disclosed on page 34 of your current report on Form 10-Q filed January 26, 2023.

7. Please explain how the investors “in this offering may potentially make a significant profit with the resale of the securities they purchase” by explaining and quantifying the discount associated with the conversion feature of the Series A Convertible Preferred Stock you issued. In particular, explain and quantify the discount to be received by “the holder that purchased at least 20,000 shares of Series A Convertible Preferred Stock in this offering” whom you discuss on page S-24.

"Trading in our securities is highly speculative, and we may be required to file for bankruptcy protection..."

8. Please revise this risk factor to clarify your reference to “equity holders” and distinguish between holders of common stock and the overlying equity you issued in this offering.

Issuer Free Writing Prospectus dated February 7, 2023, filed February 7, 2023

9. Please revise to explain how you arrived at the Alternate Conversion Price of $2.3727 and also explain how you used such price to arrive at the number of Common Stock Warrants issued in this offering. In this regard, we note your disclosure that the number of Common Stock Warrants issued in this offering depends in-part on “the Alternate Conversion Price (as measured as of the date of pricing of this Offering).”
10. We note that your Pricing Term Sheet discloses that, using an Alternate Conversion Price of $2.3727, there would be 99,822,986 shares of Common Stock underlying the 23,685 shares of Series A Convertible Preferred Stock issued, as well as 95,387,533 shares of common stock underlying the 95,387,533 Common Stock Warrants issued. However, you do not appear to disclose the number of common shares that ultimately underlie the 84,216 Preferred Stock Warrants; please disclose such amount.

Prospectus Supplement Summary

11. We note your disclosure that you “will be required to use availability under [your] Credit Facilities to make the Notes Interest Payment by March 3, 2023,” as well as your disclosure that you “may continue to borrow under [your] ABL Facility subject to availability thereunder.” Please revise your disclosure to provide investors with a complete picture of how the proceeds of this offering were used, your upcoming payment obligations, including the upcoming interest payment due on the Senior Notes, and any available capacity under the Credit Facilities, including a more detailed discussion of the “additional operational covenants” agreed upon pursuant to the Amended Credit Agreement and how such covenants will impact such capacity.

Sue Gove  
BED BATH & BEYOND INC  
February 23, 2023  
Page 4

12. With a view to understanding the amount and use of future proceeds to be received from the sale of securities in this offering, please quantify the amount of proceeds that you may raise on or shortly after February 27, 2023 by requiring certain holders to exercise the maximum permissible amount of preferred stock warrants at such time, and discuss the extent to which you may rely upon such forced exercise to satisfy your upcoming payment obligations. Last, explain under what circumstances you can force an exercise, and also quantify the expected amounts to be received and at what corresponding time over the next ten months.

#### Risk Factors

'If the Transactions are not consummated, we expect that we will likely file for bankruptcy protection'

13. Please revise to provide a more detailed discussion of the extent that you may rely upon proceeds from future forced exercises to avoid bankruptcy, and whether you will likely utilize total possible proceeds in an amount to exceed $1 billion, with a view to clarifying your reference to 'fully' consummating the Transactions. In your disclosure, please revise to narratively discuss the price and volume limitation conditions to raising proceeds in multiple subsequent closings.

#### Use of Proceeds

14. We note your disclosure that 'proceeds from the exercise of Series A Convertible Preferred Stock Warrants will be used to further repay outstanding amounts under the ABL Facility with 50% of such exercise amounts being applied against the borrowing base of the ABL Facility.' Please revise to disclose that such use of proceeds does not apply to proceeds raised 'in connection with the first and second Forced Exercise Dates,' as you disclose on page S-2. Make conforming changes on page S-5.

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

Please contact Brian Fetterolf at (202)-4551-6613 or Mara Ransom at 202-551-3264 with any other questions.

Sincerely,

Division of Corporation Finance