Bread Financial Holdings, Inc. (NYSE: BFH) saw its stock price drop 2.5% to $32.74 per share following the announcement of its intention to offer an additional $200 million aggregate principal amount of its 9.750% senior notes due 2029 in a private offering. The company plans to use the net proceeds from this offering, together with cash on hand, to fund the redemption of a portion of its outstanding 7.000% senior notes due 2026 and to pay related fees, premiums, and expenses.
"The additional notes will form a single series with, and have the same terms as, the existing notes. The notes will be guaranteed by each of the company's domestic subsidiaries that guarantees the company's obligations under its existing senior notes and senior credit facilities," stated a representative from Bread Financial.
The company's management highlighted its commitment to growth and financial flexibility. "Bread Financial creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility, and exceptional customer experiences," said a spokesperson for the company.
Bread Financial, headquartered in Columbus, Ohio, is known for its tech-forward financial services, providing simple, personalized payment, lending, and saving solutions. The company is driven by a digital-first approach, data insights, and white-label technology, delivering growth for its partners through a comprehensive suite of payment solutions, including private label and co-brand credit cards, and "Bread Pay" buy now, pay later products.
The full 8-K submission from Bread Financial Holdings, Inc. is available here.
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|---|
Revenue (MM) | $7,791 | $5,581 | $4,521 | $3,868 | $4,684 | $5,158 |
Revenue Growth | n/a | -28.36% | -18.99% | -14.45% | 21.1% | 10.12% |
Operating Margins | 23% | 12% | 7% | 27% | 6% | 14% |
Net Margins | 12% | 5% | 5% | 21% | 5% | 10% |
Net Income (MM) | $963 | $278 | $214 | $801 | $223 | $541 |
Net Interest Expense (MM) | $542 | $638 | $3,453 | $3,485 | $4,181 | $4,320 |
Depreciation & Amort. (MM) | $41 | $30 | $57 | $26 | $113 | $125 |
Earnings Per Share | $17.49 | $5.46 | $4.46 | $16.02 | $4.46 | $10.77 |
EPS Growth | n/a | -68.78% | -18.32% | 259.19% | -72.16% | 141.48% |
Diluted Shares (MM) | 55 | 51 | 48 | 50 | 50 | 50 |
Free Cash Flow (MM) | $2,555 | $1,076 | $1,829 | $1,459 | $1,780 | $1,799 |
Capital Expenditures (MM) | $200 | $142 | $54 | $84 | $68 | $68 |
Current Ratio | 2.15 | 2.03 | 1.88 | 1.5 | 1.0 | 1.0 |
Total Debt (MM) | $5,870 | $3,011 | $2,907 | $7,439 | $8,007 | $4,223 |
Net Debt / EBITDA | 1.14 | -1.25 | 0.31 | 4.11 | 9.97 | 0.97 |
Bread Financial has declining revenues and decreasing reinvestment in the business, declining EPS growth, and irregular cash flows. On the other hand, the company benefits from decent operating margins with a negative growth trend and healthy leverage.