- Bed Bath & Beyond shares jumped more than 31% in premarket trading Wednesday.
- The meme stock's surge followed a Wall Street Journal report on a new loan deal the company secured.
- The details of the agreement aren't yet clear, though the Journal previously reported the retailer sought $375 million.
Shares of Bed Bath & Beyond jumped early Wednesday after the Wall Street Journal reported that the retailer secured new financing to help bolster liquidity.
Sources told the Journal the company announced to prospective lenders on Tuesday that it had picked a lender to provide a loan.
Financial terms aren't yet clear, though the Journal previously reported the company had sought roughly $375 million to help pay down existing debt.
Bed Bath & Beyond stock leapt 31% before the opening bell to trade at around $11.54.
The Journal reported that the financing is set up as first-in-last-out loan that will rank lower than other secured debt in the event of a bankruptcy.
An injection of new liquidity is seen giving the company's vendors confidence to continue selling goods to the company following its push into private-label brands that faltered, according to the report.
Shares of the meme-stock favorite have endured a roller-coaster ride this month as retail investors pushed the stock as high as $30. Then, last week billionaire activist investor Ryan Cohen shed his stake in the company, sending shares below $9.
Meanwhile, a college student cashed out $110 million in profit from the meme stock after building a 6.2% stake in the company.
On Tuesday, the stock closed at $8.78, above the $5 mark it had begun the month at but still well below the highs of recent rallies.