Bread Financial Holdings, Inc. (NYSE: BFH) has successfully priced its private offering of $400 million in aggregate principal amount of its 8.375% fixed-rate reset subordinated notes due 2035. The company expects to receive approximately $395 million in net proceeds from the offering after deducting the initial purchasers' discount, with the closing of the issuance scheduled for March 10, 2025.
Out of the net proceeds, Bread Financial intends to lend no less than $250 million to one of its subsidiary banks, Comenity Capital Bank, as subordinated debt. The remaining proceeds are earmarked for general corporate purposes, including potential share repurchases.
The notes offered have not been registered under the Securities Act or any state securities laws and are only available to qualified institutional buyers or non-U.S. persons in compliance with Regulation S under the Securities Act.
Bread Financial, a tech-forward financial services company, is known for providing simple, personalized payment, lending, and saving solutions to millions of U.S. consumers. Additionally, the company partners with various brands in travel & entertainment, health & beauty, jewelry, and specialty apparel to deliver growth through private label and co-brand credit cards and pay-over-time products.
The company's commitment to sustainable business practices is underscored by its 6,000 global associates. As of the announcement, Bread Financial is headquartered in Columbus, Ohio. As a result of these announcements, the company's shares have moved -1.0% on the market, and are now trading at a price of $50.39. Check out the company's full 8-K submission here.
