Bread Financial Holdings Inc. Announces Launch of Preferred Stock Offering

The offering consists of depositary shares, each representing a 1/40th interest in a share of Bread Financial's Non-Cumulative Perpetual Preferred Stock, Series A. The Series A Preferred Stock has a par value of $0.01 per share, and it boasts a liquidation preference of $25 per Depositary Share, which translates to $1,000 per share of Series A Preferred Stock.

In a bid to provide more flexibility and access to investors, the company intends to apply for the listing of these Depositary Shares on The New York Stock Exchange. This strategic listing is expected to enhance the liquidity of the shares.

Bread Financial plans to utilize the net proceeds generated from this offering for general corporate purposes. This may include contributing or lending a portion of the proceeds to one of its subsidiary banks, Comenity Capital Bank, as well as potential stock repurchases. This maneuver aligns with the company’s goal to strengthen its balance sheet and return value to its shareholders.

The offering is being managed by a team of well-known financial institutions, with Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC serving as joint bookrunners. However, it is important to note that the consummation of the offering is contingent upon market conditions and other factors, which introduces a level of uncertainty regarding the successful completion of the transaction.

The offering is being conducted in accordance with an effective registration statement previously filed with the Securities and Exchange Commission (SEC). A final prospectus supplement and accompanying prospectus will be filed with the SEC and made available to potential investors, ensuring compliance with regulatory standards.

Bread Financial is a tech-forward financial services company that specializes in providing simple and personalized payment, lending, and saving solutions to millions of consumers across the United States. The company aims to empower its customers through various financial products, including general-purpose credit cards and savings solutions, while also driving growth for recognized brands through private label and co-branded credit card offerings.

With this latest announcement, Bread Financial Holdings Inc. is clearly positioning itself for future growth, seeking to enhance its capital structure while maintaining its commitment to providing value to its customers and shareholders. As the company navigates the complexities of the market, stakeholders will be closely watching how this offering unfolds and its potential impact on the company’s financial trajectory.