Bread Financial Holdings, Inc. (NYSE: BFH) has announced the launch of an underwritten public offering of depositary shares, each representing a 1/40th interest in a share of its non-cumulative perpetual preferred stock, Series A. The liquidation preference of this stock is $25 per depositary share, equivalent to $1,000 per share of Series A preferred stock.
The net proceeds from the sale of the depositary shares will be used for general corporate purposes, potentially including contributing or lending a portion of the proceeds to its subsidiary bank, Comenity Capital Bank, as well as for share repurchases.
The joint bookrunners for the offering are Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC.
This offering is subject to market and other conditions, and the company has indicated that there is no assurance that the transaction will be completed on the terms described or at all.
The offering is being made pursuant to an effective registration statement on Form S-3 previously filed with the Securities and Exchange Commission (SEC) and a prospectus supplement. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and made available on the SEC’s website.
Bread Financial® (NYSE: BFH) 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 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. Today the company's shares have moved 2.99% to a price of $62.35. Check out the company's full 8-K submission here.
