Barnes & Noble Education (NYSE: BNED) stock plummeted during early trading Wednesday after the company announced several key updates including a 1-for-100 reverse stock split.
Barnes & Noble Education (BNED) has announced the completion of significant equity and refinancing transactions, accompanied by leadership changes, and a 1-for-100 reverse stock split.
The company reports that the equity and refinancing transactions, conducted with Immersion Corporation and existing partners, have substantially fortified its financial standing, injecting over $100 million in new equity. This infusion comprises $95 million in new equity capital, secured through a $50 million private investment and a $45 million fully backstopped equity rights offering, resulting in approximately $80 million in net cash after accounting for transaction costs.
In addition, second-lien lenders have converted $34 million in debt into shares of common stock. BNED has also extended its $325 million loan facility with Bank of America, now maturing in 2028. This extension will enhance the company’s financial flexibility and reduce annual interest expenses.
As part of these transformative transactions, BNED has appointed a new board of directors, welcoming five new directors to the leadership team. Additionally, the company will implement a 1-for-100 reverse stock split effective June 11, to meet the NYSE’s minimum bid price requirement. This initiative will reduce the number of outstanding shares from approximately 2.62 billion to 26.2 million.
Barnes & Noble Education (NYSE: BNED) Stock Reaction
As of 09:48 a.m. (Eastern Time) Wednesday, BNED stock traded at $7.35, marking a 22.06% decrease compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
