Bread Financial plans $500 million senior notes offering

COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE:BFH), a $3.05 billion market cap financial services company trading near its 52-week high, announced Tuesday plans to offer $500 million in senior notes through a private offering exempt from Securities Act registration requirements, subject to market conditions.

The financial services company, which currently maintains a total debt of $4.23 billion and a debt-to-equity ratio of 1.34x, intends to use the proceeds, combined with approximately $275 million in cash on hand, to redeem its outstanding 9.750% Senior Notes due 2029, of which $719 million aggregate principal amount remains outstanding.

The new notes will be guaranteed by Bread Financial’s domestic subsidiaries that currently guarantee the company’s existing senior notes and senior credit facility. The offering has not been finalized and remains subject to market conditions.

These notes will not be registered under the Securities Act or state securities laws and will only be offered to qualified institutional buyers under Rule 144A of the Securities Act or to non-U.S. persons outside the United States in compliance with Regulation S.

Bread Financial provides payment, lending and savings solutions to U.S. consumers, including general purpose credit cards and savings products. The company also offers private label and co-brand credit cards for various retail partners in travel, entertainment, health, beauty, jewelry and specialty apparel sectors. According to InvestingPro data, the company generates $2.45 billion in revenue and trades at an attractive P/E ratio of 6.76x, though current analysis suggests the stock may be slightly overvalued at present levels.

The announcement contains forward-looking statements that are subject to risks including macroeconomic conditions, global political events, credit performance, competitive pressures, and regulatory actions. Despite these risks, InvestingPro analysis indicates a GOOD overall Financial Health Score of 2.71, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.

This announcement is based on a company press release and does not constitute an offer to sell securities or a redemption notice for the 2029 Notes.

In other recent news, Bread Financial Holdings Inc. announced a substantial earnings beat for the third quarter of 2025. The company reported earnings per share of $4.02, significantly exceeding the forecasted $2.16. Revenue also surpassed expectations, reaching $971 million compared to the anticipated $967.72 million. These recent developments highlight the company’s strong financial performance. Despite these positive results, the stock experienced a decline in pre-market trading, reflecting varied investor sentiment. There were no recent updates regarding mergers or acquisitions. Additionally, there were no analyst upgrades or downgrades reported in conjunction with these earnings. Bread Financial’s performance continues to be closely monitored by investors and analysts alike.

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