April 4th, 2023: "What is JP Morgan Chase Doing?"

This thread covers the company's default on Jan 13th with context from their credit agreements with JP Morgan, including a Jan 13th Pitchbook input of a leveraged buy-out of Bed Bath & Beyond.

https://twitter.com/pirateportfo/status/1643211914640773120?s=20

April 5th, 2023: "Why Would Perella Weinberg Advise Bondholders to Exchange for Equity?"

This thread covers the company's debt-to-equity exchange deals in Nov2022, including a bankruptcy waterfall analysis and relevant experience from Perella Weinberg.

https://twitter.com/pirateportfo/status/1643574321401716736?s=20

WSJ reporter @GunjanJS writes, "When #BBBY filed for bankruptcy, it had a gaping hole in its financials: assets of $4.4b and liabilities of $5.2b," but are these numbers currently accurate?

This post looks into two strategies which create net-positive value for shareholders. To begin, these figures were reported in FY22 Q3 earnings for the period ending Nov 26th. Much has changed in the six+ months since.

These figures will not include $360m in equity capital from the Feb securities offering, nor the assuredly negative cash flow from operations.

From the introduction to the book ‘King Icahn’ by Mark Stevens,

“Icahn had built a position in a company, then traded over-the-counter, to the point that he owned a substantial block of the outstanding stock.” #BBBY “Convinced that he had made a forceful case for reconfiguring the business, Icahn paced like an expectant father, waiting for what he hoped would be a favorable response to his plan.”

“Investment banker: ‘You know, Carl, they don't like you at all.’”

Debt is the New Equity: A look into Sponsored Buyouts in Chapter 11 and recent events surrounding Bed Bath & Beyond including volume in the company's bonds and the appointment of Holly Etlin to Chief Restructuring Officer. #BBBY This six page Kirkland and Ellis paper (2009) details Sponsored Buyouts and the Plan Sponsor Transaction through Chapter 11 bankruptcy proceedings. The following quotes will summarize the paper, but it's worth a full read.

Source: kirkland.com/-/media/public…

The Day After Bankruptcy, La Fin:

On Mar 30th, Bed Bath files $300m ATM offering to be completed Apr 26th or face bankruptcy. The funds would close the ABL w JP Morgan 3 years before maturity. Any acquisition requires JPM approval, except in chapter 11 proceedings. #BBBY The $300m ATM offering Mar 30th states,

"Upon filing our annual report Form 10-K, which is due by April 26th, 2023, we will lose S-3 eligibility and therefore we expect all sales made pursuant to the sales agreement will cease by April 26th, 2023...

5 Days to Bankruptcy: Cohen argues a multi-billion $$ valuation of BABY as the Ultimate Destination for Babies. He sells his Bed Bath position in Aug at the start of M&A negotiations. His letter suggests his willingness to hold the board accountable. #BBBY

https://twitter.com/pirateportfo/status/1638138415299579905?s=20

"Given that BABY is estimated to reach $1.5 billion in sales in Fiscal Year 2023 with a double-digit growth profile and at least 50% digital penetration, we believe it is likely much more valuable than the Company's entire market capitalization today."
($1.6b at time of writing)

9 Days to Bankruptcy: Jake Freeman announces ownership of 2024 notes and 6.21% equity stake in Bed Bath & Beyond on July 21st, proposing a bond issuance to raise cash while opposing a sale of the company or a significant amount its assets. #BBBY

https://twitter.com/pirateportfo/status/1630181171845013505?s=20

"Freeman Capital advocates for a debt realignment that does not change or affect the control. BBBY's effective realignment is a top priority for Freeman Capital and is made in the context of a disinterested shareholder-"

Bloomberg reported Sunday, "Bed Bath Begins Three-Week Countdown to Possible Bankruptcy". I'd like to celebrate our final days to April 26th w a daily discussion of various topics hinting at the latest corporate raid of @Carl_C_Icahn

Day 22: What is JP Morgan Chase Doing? #BBBY

https://twitter.com/pirateportfo/status/1630181140245143552

"On or around January 13, 2023, certain events of default were triggered under the Company’s Credit Facilities (as defined below) as a result of the Company’s failure to prepay an overadvance and satisfy a financial covenant, among other things."

Source:
bedbathandbeyond.gcs-web.com/node/16871/html

I'd Like To Solve The Puzzle:
A 12-Page Report Exploring Strategic Acquisitions with GameStop CEO, Matt Furlong, 🍎 GameStop Achieves Near-Term Profitability
📙 Mathematical Analysis of Acquisition

I'd Like To Solve The Puzzle:
A 22-Page Report detailing the Marriage of Ryan Cohen and buybuy Baby, 🍎 WHAT: The Ultimate Destination for Retail
📙 HOW: Merging GameStop with Baby

I'd Like To Solve The Puzzle:
A 60-Page Report detailing the Marriage of Carl Icahn and Bed Bath & Beyond, 🍎 WHAT: Leveraged Buy-Out, Spin-off BABY
📙 HOW: Bond Exchange, The Team & Kastin
🌲 WHY: Merger with WestPoint and Newell
🫐 WHEN: Filings, Earnings, Bond Payment

GM $bbby tomorrow is finally here! Sunday, February 5th, today is a FULL MOON!!🌝

I'm going to share insight on what happened 2/1 and why I believe today (or very soon) we may see @Carl_C_Icahn tweet, "IEP has acquired Bed Bath in a majority-equity transaction for $45/share." In case you missed Friday's post, here's a brief introduction of the general conditions surrounding $bbby indicating a hostile bond takeover has been in the works for several months now.

https://twitter.com/pirateportfo/status/1621646625696546816?s=46&t=D9_zc29qlHN8QlMfLmxr4Q

Here's what's on my mind about the $bbby bonds situation.

If you've been following along w me since Oct, you'll know that the big move I'm expecting is a take-private acquisition via hostile bond takeover. On Oct 18th, the company offered to exchange all its senior notes. Per this SEC filing, the exchange offered second/third lien notes for their unsecured notes. If holders of the 24, 34, or 44 bonds expect bankruptcy, it would be attractive for them to accept the secured notes before the company fails to pay the bonds at par value plus interest.