Bread Financial Announces Pricing of Private Offering of $400 million of Subordinated Notes
Bread Financial Holdings (NYSE: BFH) has announced the pricing of $400 million in 8.375% fixed-rate reset subordinated notes due 2035. The notes will be sold at 100% of the principal amount in a private offering exempt from Securities Act registration requirements.
The offering, expected to close on March 10, 2025, will generate approximately $395 million in net proceeds after deducting initial purchasers' discount. The company plans to lend at least $250 million of the proceeds as subordinated debt to its subsidiary Comenity Capital Bank, with remaining funds allocated for general corporate purposes, including potential share repurchases.
The notes are being offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
Bread Financial Holdings (NYSE: BFH) ha annunciato la determinazione del prezzo di 400 milioni di dollari in note subordinate a tasso fisso di reset dell'8,375% con scadenza nel 2035. Le note saranno vendute al 100% dell'importo principale in un'offerta privata esente dai requisiti di registrazione della Securities Act.
L'offerta, che si prevede si chiuderà il 10 marzo 2025, genererà circa 395 milioni di dollari in proventi netti dopo aver detratto lo sconto per i primi acquirenti. L'azienda prevede di prestare almeno 250 milioni di dollari dei proventi come debito subordinato alla sua controllata Comenity Capital Bank, mentre i fondi rimanenti saranno destinati a scopi aziendali generali, inclusi eventuali riacquisti di azioni.
Le note sono offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S della Securities Act.
Bread Financial Holdings (NYSE: BFH) ha anunciado el precio de 400 millones de dólares en notas subordinadas a tasa fija de 8.375% con vencimiento en 2035. Las notas se venderán al 100% del monto principal en una oferta privada exenta de los requisitos de registro de la Ley de Valores.
Se espera que la oferta se cierre el 10 de marzo de 2025, generando aproximadamente 395 millones de dólares en ingresos netos después de deducir el descuento para los compradores iniciales. La compañía planea prestar al menos 250 millones de dólares de los ingresos como deuda subordinada a su filial Comenity Capital Bank, y los fondos restantes se destinarán a fines corporativos generales, incluidos posibles recompras de acciones.
Las notas se ofrecen exclusivamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
Bread Financial Holdings (NYSE: BFH)는 2035년 만기인 8.375% 고정금리 재설정 후순위 채권 4억 달러의 가격을 발표했습니다. 이 채권은 증권법 등록 요건에서 면제되는 사모 방식으로 원금의 100%로 판매됩니다.
이번 공모는 2025년 3월 10일에 마감될 예정이며, 초기 구매자 할인액을 제외한 후 약 3억 9천 5백만 달러의 순수익을 창출할 것입니다. 회사는 이 중 최소 2억 5천만 달러를 자회사인 Comenity Capital Bank에 후순위 채무로 대출할 계획이며, 나머지 자금은 일반 기업 목적, 즉 주식 재매입 가능성을 포함하여 사용될 것입니다.
이 채권은 144A 규정에 따라 자격을 갖춘 기관 투자자에게만 제공되며, 미국 외의 개인에게는 증권법의 S 규정에 따라 제공됩니다.
Bread Financial Holdings (NYSE: BFH) a annoncé le prix de 400 millions de dollars pour des obligations subordonnées à taux fixe de 8,375% arrivant à échéance en 2035. Les obligations seront vendues à 100% du montant principal lors d'une offre privée exemptée des exigences d'enregistrement de la Loi sur les valeurs mobilières.
L'offre, qui devrait se clôturer le 10 mars 2025, générera environ 395 millions de dollars de produits nets après déduction de la remise accordée aux premiers acheteurs. La société prévoit de prêter au moins 250 millions de dollars des produits sous forme de dette subordonnée à sa filiale Comenity Capital Bank, les fonds restants étant alloués à des fins générales d'entreprise, y compris des rachats d'actions potentiels.
Les obligations sont offertes exclusivement à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des personnes non américaines conformément à la réglementation S de la Loi sur les valeurs mobilières.
Bread Financial Holdings (NYSE: BFH) hat den Preis von 400 Millionen Dollar für 8,375% festverzinsliche nachrangige Anleihen mit Fälligkeit im Jahr 2035 bekannt gegeben. Die Anleihen werden in einem privaten Angebot, das von den Registrierungsanforderungen des Wertpapiergesetzes befreit ist, zum 100% des Nennbetrags verkauft.
Das Angebot, das voraussichtlich am 10. März 2025 abgeschlossen wird, wird nach Abzug des Rabatts für Erstkäufer voraussichtlich etwa 395 Millionen Dollar an Nettoerlösen generieren. Das Unternehmen plant, mindestens 250 Millionen Dollar der Erlöse als nachrangige Schulden an seine Tochtergesellschaft Comenity Capital Bank zu verleihen, wobei die verbleibenden Mittel für allgemeine Unternehmenszwecke, einschließlich möglicher Aktienrückkäufe, verwendet werden.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen gemäß Regulierung S des Wertpapiergesetzes angeboten.
- Successful pricing of $400M notes offering
- Potential share repurchase program
- $250M capital injection to strengthen banking subsidiary
- High interest rate of 8.375% on notes
- Additional long-term debt burden
- Notes not registered under Securities Act, limiting potential investors
Insights
Bread Financial's $400 million subordinated notes offering represents significant balance sheet management activity with several strategic implications. The 8.375% fixed-rate reset notes due 2035 were priced at par (100% of principal), suggesting appropriate market demand despite the relatively high coupon rate reflective of their subordinated status in the capital structure.
The company's allocation plan reveals two strategic priorities: First, directing $250+ million to Comenity Capital Bank as subordinated debt strengthens the subsidiary's capital position, potentially supporting loan portfolio growth or meeting regulatory capital requirements. Second, the remaining ~$145 million for general corporate purposes, including possible share repurchases, signals confidence in capital deployment opportunities.
From a capital structure perspective, this subordinated debt sits between senior debt and equity, carrying higher interest costs but providing financial flexibility without immediate equity dilution. The 8.375% interest rate translates to approximately
For investors, this transaction creates a mixed impact: strengthening banking operations while increasing financial leverage. The potential share repurchase component could support EPS growth, though funded through debt rather than free cash flow. Overall, this debt issuance demonstrates market access while adding incremental financial obligation to Bread Financial's balance sheet.
COLUMBUS, Ohio, March 05, 2025 (GLOBE NEWSWIRE) -- Bread Financial® Holdings, Inc. (NYSE: BFH) (“Bread Financial” or the “Company”) announced today the pricing of its previously announced offering of
The Company intends to lend no less than
The Notes will not be registered under the Securities Act, or any state securities laws. The Notes may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws. Accordingly, the Notes were offered only (A) to persons reasonably believed to be “qualified institutional buyers” under Rule 144A of the Securities Act or (B) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act.
This news release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Bread Financial®
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 Bread Financial general purpose credit cards and savings products, empower its customers and their passions for a better life. Additionally, the Company delivers growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through their private label and co-brand credit cards and pay-over-time products providing choice and value to their shared customers.
Forward-looking Statements
This news release contains forward-looking statements, including, but not limited to, statements related to the Notes offering described above. Forward-looking statements give the Company’s expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements made regarding, and the guidance given with respect to, the Company’s anticipated operating or financial results, future financial performance and outlook, future dividend declarations or stock repurchases and future economic conditions.
The Company believes that its expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that the Company’s expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, interest rates, labor market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; global political, public health and social events or conditions, including ongoing wars and military conflicts, and natural disasters; future credit performance of the Company’s customers, including the level of future delinquency and write-off rates; loss of, or reduction in demand for services from, significant brand partners or customers in the highly competitive markets in which the Company competes; the concentration of the Company’s business in U.S. consumer credit; increases or volatility in the Allowance for credit losses that may result from the application of the current expected credit loss (CECL) model; inaccuracies in the models and estimates on which the Company rely, including the amount of the Company’s Allowance for credit losses and its credit risk management models; increases in fraudulent activity; failure to identify, complete or successfully integrate or disaggregate business acquisitions, divestitures and other strategic initiatives, including, with respect to divested businesses, any associated guarantees, indemnities or other liabilities; the extent to which the Company’s results are dependent upon brand partners, including brand partners’ financial performance and reputation, as well as the effective promotion and support of the Company’s products by brand partners; increases in the cost of doing business, including market interest rates; the Company’s level of indebtedness and inability to access financial or capital markets, including asset-backed securitization funding or deposits markets; restrictions that limit the ability of the Company’s subsidiary banks, Comenity Bank and Comenity Capital Bank (the “Banks”), to pay dividends to it; pending and future litigation; pending and future federal, state, local and foreign legislation, regulation, supervisory guidance and regulatory and legal actions including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; increases in regulatory capital requirements or other support for the Banks; impacts arising from or relating to the transition of the Company’s credit card processing services to third party service providers that it completed in 2022; failures, or breaches in operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects, failure of information security controls or otherwise; loss of consumer information or other data due to compromised physical or cyber security, including disruptive attacks from financially motivated bad actors and third-party supply chain issues; any tax or other liability, or adverse impacts arising out of or related to the spinoff of the Company’s former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries, and subsequent litigation or other disputes. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. In addition, the Consumer Financial Protection Bureau (CFPB) issued a final rule in 2024 that, absent a successful legal challenge or other invalidation of the rule, will place significant limits on credit card late fees, which would have a significant impact on the Company’s business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that the Company has taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact it over the long term; the Company cannot provide any assurance as to the effective date, if any, of the rule, the result of any pending or future challenges or other litigation relating to the rule, or its ability to mitigate or offset the impact of the rule on its business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, the Company’s Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. The Company’s forward-looking statements speak only as of the date made, and it undertakes no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Contacts
Brian Vereb — Investor Relations
Brian.Vereb@breadfinancial.com
Susan Haugen — Investor Relations
Susan.Haugen@breadfinancial.com
Rachel Stultz — Media
Rachel.Stultz@breadfinancial.com
FAQ
What is the interest rate and maturity of Bread Financial's (BFH) new subordinated notes?
How much will Bread Financial (BFH) receive in net proceeds from the March 2025 notes offering?
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Who is eligible to purchase Bread Financial's (BFH) March 2025 subordinated notes?
