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COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE:BFH) announced Thursday 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 financial services company, currently trading at $62.35 with a market capitalization of $2.85 billion, has been rated with a "GOOD" financial health score according to InvestingPro data.
The depositary shares will have a liquidation preference of $25 per share, equivalent to $1,000 per share of the underlying Series A Preferred Stock. The company plans to apply for listing of the depositary shares on the New York Stock Exchange.
According to the company's statement, proceeds from the offering will be used for general corporate purposes, potentially including contributing funds to its subsidiary bank, Comenity Capital Bank, and share repurchases.
Wells Fargo Securities, J.P. Morgan Securities, Morgan Stanley, and RBC Capital Markets are serving as joint bookrunners for the offering.
The financial services company noted that the offering is subject to market conditions, with no guarantee of successful completion. The offering is being conducted through an effective registration statement previously filed with the Securities and Exchange Commission.
Bread Financial provides payment, lending, and savings solutions to U.S. consumers through its general purpose credit cards and savings products. The company also partners with brands in travel, entertainment, health, beauty, jewelry, and specialty apparel sectors through private label and co-brand credit card programs. Currently trading at a P/E ratio of 6.31, Bread Financial appears undervalued according to InvestingPro Fair Value estimates, with analysts setting price targets ranging from $52 to $98.
The announcement comes as financial institutions continue to evaluate capital structures amid evolving market conditions. This preferred stock offering represents one approach to raising capital while potentially enhancing the company's financial flexibility.
The information in this article is based on a press release statement from Bread Financial.
In other recent news, Bread Financial Holdings, Inc. reported a significant earnings beat for the third quarter of 2025, with earnings per share reaching $4.02, well above the projected $2.16. The company also reported revenue of $971 million, slightly exceeding the expected $967.72 million. Additionally, Bread Financial announced the pricing of $500 million in 6.750% senior notes due 2031, with the offering expected to close on November 6, 2025. The net proceeds are anticipated to be approximately $493 million after expenses. Bread Financial plans to use these proceeds, along with $275 million in cash, to redeem outstanding 9.750% Senior Notes due 2029, totaling $719 million. The company also reported improved credit performance metrics for October 2025, with a net loss rate decrease to 7.5% from 7.9% in October 2024. Net principal losses fell to $112 million from $120 million year-over-year. These developments reflect ongoing financial strategies and performance improvements at Bread Financial.
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