With Bed Bath & Beyond and Tuesday Morning liquidating, At Home Group is reconfiguring finances to chase their former customers.
In the transactions, a subsidiary of At Home completed a private placement of $200 million aggregate principal amount of 11.500% senior secured notes due 2028, the net proceeds of which were on-lent to the company. Concurrent with the offering of the 11.500% senior secured notes, certain holders of the company’s existing 7.125% senior unsecured notes due 2029 will exchange their existing unsecured notes for new company issued 7.125%/8.625% Cash/PIK Toggle senior secured notes due 2028.
In addition, At Home asserted that it expects to exchange approximately $447 million of its existing unsecured notes for exchange notes in an aggregate principal amount of about $412 million, representing an exchange of existing unsecured notes for exchange notes at 90% of par value plus accrued interest.
The 11.500% senior secured notes and the exchange notes were not registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from set registration requirements. At Home offered the notes only to qualified institutional buyers in accordance with Rule 144A under the Securities Act, it stated
“These transactions further strengthen our financial position and provide At Home with incremental capital to support our growth objectives and execute on our strategic plan,” said Lee Bird, At Home chairman and CEO. “At Home’s value positioning, unique product assortment and unmatched selection remain highly differentiated in the marketplace. With these transactions, we are able to further invest in our business and strengthen our position as the leading destination for home décor. And with significant runway to add stores, we believe we are well positioned to continue our long track record of double-digit growth in the coming years. We appreciate the support from our financing partners who recognize the value of our business and potential for long-term growth.”
