Exciting Development in Funding for Bread Financial
Bread Financial Holdings, Inc. (NYSE: BFH) has announced an important milestone in its corporate journey with the pricing of its underwritten public offering of depositary shares. Each of these shares represents a 1/40th interest in a share of its Non-Cumulative Perpetual Preferred Stock, Series A, with a par value of $0.01 per share. This offering is poised to provide Bread Financial with robust capital, enhancing its operational capabilities.
Details of the Offering
The company's offering comes with a liquidation preference of $25 per depositary share, amounting to $1,000 per share of the Series A Preferred Stock. This strategic financial move reflects Bread Financial’s commitment to strengthening its financial position and expanding its service capabilities across the market.
Expected Completion and Uses of Proceeds
Closing of the offering is scheduled for November 25, 2025, provided all customary conditions are met. This offering is expected to generate around $72.6 million in net proceeds for the company, after accounting for underwriting discounts and expenses associated with the offering.
Targets for Investment
The net proceeds from this initiative will support a variety of corporate purposes. These may include lending or contributing capital to one of its subsidiary banks, Comenity Capital Bank, and conducting share repurchases, which showcases the company’s strategic direction in utilizing funds effectively.
Role of Leading Financial Institutions
Notably, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC are serving as joint bookrunners for this significant offering. Their expertise will assist in managing this public offering efficiently and effectively.
About Bread Financial
Bread Financial (NYSE: BFH) distinguishes itself as a tech-savvy financial services provider, delivering personalized payment, lending, and saving solutions. The company serves millions of consumers across the U.S., implementing innovative financial products that empower customers to achieve their personal and financial goals.
Commitment to Consumer Empowerment
Bread Financial’s payment solutions, which include general purpose credit cards and various savings offerings, are aimed at helping customers enjoy a better financial life. The company collaborates with major brands in travel, health, beauty, jewelry, and apparel, leveraging its co-brand and private label credit cards to create value for consumers.
How to Access the Offering
The offering is part of an effective registration statement previously filed with the Securities and Exchange Commission (SEC). Investors looking to obtain a final prospectus supplement, along with an accompanying prospectus, will find these documents posted on the SEC's website, aimed at providing transparency and accessibility to potential investors.
Investor Relations Contacts
For further inquiries, investors can reach out directly to the Bread Financial Investor Relations team. Brian Vereb and Susan Haugen are available for any questions regarding financial performance or this offering. Additionally, Rachel Stultz is reachable for media relations. The direct emails for these contacts are Brian.Vereb@breadfinancial.com and Susan.Haugen@breadfinancial.com.
Frequently Asked Questions
What is the purpose of the offering?
The offering aims to raise capital for general corporate purposes, including support for subsidiary banks and potential share repurchases.
When does the offering close?
The closing of the offering is expected to occur on November 25, 2025, subject to standard conditions.
Who are the bookrunners for the offering?
The joint bookrunners include Wells Fargo Securities, J.P. Morgan Securities, Morgan Stanley, and RBC Capital Markets.
What benefits do the depositary shares offer?
The depositary shares represent a fractional ownership in preferred stock, providing investors with potential dividends and a preference in the event of liquidation.
How can investors learn more about this offering?
Details about the offering, including a prospectus, will be available on the SEC's website and can also be requested from the bookrunners of the offering.
