Bread Financial Holdings, Inc. (NYSE: BFH) has announced the pricing of its private offering of $500 million in aggregate principal amount of its 6.750% senior notes due 2031. The notes are expected to result in approximately $493 million in net proceeds to the company after deducting the initial purchasers' discount and the company’s estimated offering expenses. This offering, which is exempt from the registration requirements of the Securities Act of 1933, is expected to close on November 6, 2025.
The company intends to use the net proceeds from the notes offering, together with approximately $275 million of cash on hand, for the redemption in full (including the make-whole premium) of its outstanding 9.750% senior notes due 2029, of which there is $719 million aggregate principal amount outstanding.
Bread Financial also sent a conditional notice to holders of its 2029 notes, indicating its intention to redeem all of the outstanding 2029 notes on November 7, 2025, subject to the consummation of the notes offering resulting in gross proceeds of at least $500 million to the company no later than 11:00 a.m. New York City time on November 7, 2025.
The notes will be guaranteed, on a full, joint and several basis, by each of the company’s domestic subsidiaries that guarantees the company’s obligations under its existing senior notes and its senior credit facility. It's important to note that the notes will not be registered under the securities act, or any state securities laws.
Bread Financial® is a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers. The company's payment solutions, including general purpose credit cards and savings products, aim to empower customers and their passions for a better life. Additionally, the company delivers growth for some of the most recognized brands in travel and entertainment, health and beauty, jewelry, and specialty apparel through their private label and co-brand credit cards and pay-over-time products. Following these announcements, the company's shares moved -1.99%, and are now trading at a price of $64.94. For the full picture, make sure to review BREAD FINANCIAL HOLDINGS, INC.'s 8-K report.
