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Bed Bath & Beyond

secured a loan to build its cash levels and pay down debt, which may give investors and suppliers confidence the retailer can overcome its current difficulties.

The company gave the news to prospective lenders on Monday after a market process led by JPMorgan Chase, The Wall Street Journal reported, citing people familiar with the matter. It had been seeking about $375 million, though the details of the loan weren’t disclosed.

Bed Bath & Beyond

(ticker: BBBY) shares have been on a roller coaster since the company’s first-quarter earnings report in June showed sales fell 23%. Shares fell on the day, but then climbed more than fourfold in the following weeks. They dropped again sharply in mid-August as billionaire activist Ryan Cohen announced he would sell his stake held through RC Ventures.

The stock surged 17.8% to $10.34 in premarket trading Wednesday.

The loan may ease fears about the company’s finances and reassure vendors that supply goods. The company has promised to provide an update on its balance sheet at the end of the month.

The company burned through more than $500 million in cash in the quarter ending in May. Bed Bath & Beyond didn’t immediately respond to a request for comment from Barron’s. JPMorgan declined to comment to the Journal.

Write to brian.swint@dowjones.com