Barnes & Noble Education Inc BNED shares are surging in extended trading Wednesday after the company announced shareholders approved milestone equity and refinancing transactions.

What Happened: After the market close on Wednesday, Barnes & Noble said shareholders voted to approve its previously announced equity and refinancing transactions with Immersion Corp and existing shareholders.

The refinancing is expected to significantly strengthen Barnes & Noble’s long-term financial position, deleverage its balance sheet and enable it to continue to strategically invest in innovation.

Upon closing, Barnes & Noble will receive gross proceeds of $95 million, including a $50 million new equity investment from Immersion and an additional $45 million equity rights offering. The company anticipates a cash infusion of approximately $75 million in net proceeds.

Barnes & Noble’s existing second lien lenders will convert approximately $34 million of outstanding principal into common stock and the company will refinance its existing asset-backed loan facility. The transactions are expected to close in the second week of June.

In addition, Barnes & Noble announced that shareholders approved the appointment of five new directors to the company’s board, as well as the re-appointment of two existing directors.

Don’t Miss: Lululemon Q1 Earnings: Revenue Beat, EPS Beat, Comps Up 6%, Soft Q2 Guidance And More

BNED Price Action: Barnes & Noble shares were up 10.06% after hours at 33 cents at the time of publication. According to Benzinga Pro, the stock is still down more than 75% year-to-date.

Photo: Mike Kalasnik from Flickr.