Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced today a share repurchase program totaling up to $675 million over the next three years. As part of the program, the Company has entered into an accelerated share repurchase agreement (ASR) to repurchase an aggregate of $225 million of Bed Bath & Beyond's common stock.

"We're focused on maximizing value for our shareholders and the ASR reflects our commitment to returning capital as part of a balanced approach to drive shareholder value creation and sustainable growth for the business. Our decision to resume our share buyback program coupled with our actions to date to pay down debt, sell non-core assets and increase liquidity, reflect the strength of our business and financial position, capacity for strategic investments, disciplined approach to capital allocation and our confidence in our growth plan," said President and Chief Executive Officer Mark Tritton.

Under the terms of the ASR, the purchase price per share will be determined based on the daily volume-weighted average stock price over the term of the ASR, less an agreed discount and subject to adjustments. The final number of shares repurchased under the ASR will be determined based on such purchase price. The final settlement of the transaction is expected to occur no later than the end of the Company's fiscal 2020 fourth quarter ending on February 27, 2021. JPMorgan Chase Bank, National Association acted as sole counterparty to the ASR agreement.

Bed Bath & Beyond is funding the share repurchases under the ASR with existing cash resources primarily generated from the monetization of some non-core assets. In addition to the accelerated share buyback that will occur in fiscal 2020, the Company expects to return up to $150 million per year in share repurchases over the next three years for a total share repurchase program of up to $675 million. In March of 2020, the Company suspended its previously authorized share repurchase program as part of the decisive actions taken to proactively manage the unprecedented financial and operational impacts of COVID-19. Since that time, the Company has continued to prioritize investments that would allow it to rebuild and grow, while reducing its cost structure and enhancing its financial flexibility.

About the Company

Bed Bath & Beyond Inc. and subsidiaries is an omnichannel retailer that makes it easy for our customers to feel at home. The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.