The Bread Financial offering of 5 million depositary shares has been priced, with the company expecting approximately $120,162,500 in net proceeds if underwriters do not exercise an option to buy additional shares. Closing is expected on November 3, 2026, subject to customary conditions.

Key Takeaways

  • Each depositary share represents a 1/40th interest in a share of Series C preferred stock.
  • Underwriters have a 30-day option to purchase up to 750,000 additional depositary shares.
  • Bread Financial may use proceeds to support its subsidiary bank or repurchase shares.

Bread Financial offering terms

Bread Financial announced the pricing on October 27, 2026. The depositary shares represent interests in its 9.375% fixed-rate reset, non-cumulative perpetual Series C preferred stock.

The liquidation preference is $25 per depositary share, equivalent to $1,000 per share of Series C preferred stock. The expected net proceeds figure accounts for underwriting discounts and estimated offering expenses.

Under an agreement dated October 27, the underwriters received an option to purchase up to 750,000 additional depositary shares at the same price for 30 days following that date.

Planned use of proceeds and listing

The company intends to use the net proceeds for general corporate purposes. Those may include contributing or lending some or all of the proceeds to its subsidiary, Comenity Capital Bank, and repurchasing shares.

Bread Financial expects to apply to list the depositary shares on the New York Stock Exchange. The offering has been priced but has not yet closed.

Next milestone

The next expected milestone is the November 3 closing, subject to customary conditions.

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This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.