Bed Bath & Beyond Announces $1.1 Bln Accelerated Share Repurchase - Quick Facts

(RTTNews) - Home goods retailer Bed Bath & Beyond Inc. (BBBY) announced that it has entered into an accelerated share repurchase agreement or "ASR" with Goldman Sachs & Co. to repurchase an aggregate of $1.1 billion of the Company's common stock.

The program is expected to be completed prior to the end of the calendar year, subject to standard terms providing flexibility in the program.

In addition, the company said that it closed its underwritten public offering of $300 million aggregate principal amount of 3.749% senior unsecured notes due 2024, $300 million aggregate principal amount of 4.915% senior unsecured notes due 2034 and $900 million aggregate principal amount of 5.165% senior unsecured notes due 2044. Interest on the notes is payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2015.

The company updated its model for interest expense and diluted weighted average shares outstanding to include incremental interest expense of approximately $9 million and $46 million for the fiscal second quarter and fiscal year, respectively, and a net incremental reduction in diluted weighted average shares outstanding of about 6 million shares and 8.5 million shares for the fiscal second quarter and fiscal year, respectively.

The company expects that these changes to the model would not result in a material change to modeled net earnings per diluted share for the fiscal second quarter, and would result in an increase in modeled net earnings per share for the fiscal year.