Synchrony issues $800M in senior notes due 2031

Synchrony Financial (NYSE:SYF), a premier consumer financial services company, has announced a public offering of $800 million in senior notes with a fixed-to-floating rate due in 2031, as per a recent filing with the Securities and Exchange Commission. The offering was made on Monday, under an underwriting agreement with J.P. Morgan Securities LLC, Morgan Stanley & Co (NYSE:MS). LLC, and RBC Capital Markets, LLC.

The notes, which carry a 5.450% interest rate, will be governed by an Indenture agreement with The Bank of New York Mellon (NYSE:BK) serving as the trustee. This move is part of Synchrony’s broader capital management strategy and reflects its ongoing efforts to optimize its funding structure and liquidity position, with the company currently maintaining a debt-to-equity ratio of 1.01.

The legal validity of the notes has been confirmed by Sidley Austin LLP, and the transaction is supported by a Registration Statement previously filed with the SEC. The offering is expected to enhance Synchrony’s financial flexibility and support its operational objectives.

This financial maneuver comes as Synchrony Financial continues to navigate the evolving financial landscape and seeks to maintain a strong balance sheet. The company’s strategic actions are closely watched by investors and market analysts, given its significant role in the consumer finance industry.

Investors can refer to the SEC filing for a more detailed understanding of the terms and conditions associated with the notes. This offering is part of Synchrony’s broader financial strategy, as it continues to serve its customers with innovative financial solutions. The information reported is based on the statements made in the press release.

In other recent news, Synchrony Financial reported its fourth-quarter earnings for 2024, with earnings per share (EPS) of $1.91, slightly exceeding analyst expectations of $1.89. However, the company’s revenue of $3.8 billion fell short of the anticipated $3.84 billion. Synchrony Financial’s credit performance showed improvement, with delinquency rates remaining stable at 4.70% and net charge-offs decreasing to 6.20%. Goldman Sachs maintained a Buy rating on Synchrony Financial, with a price target of $82, citing positive trends in delinquencies and net charge-offs. The company also announced the addition of 5 million new accounts in the fourth quarter, contributing to a 2% growth in loan receivables. Synchrony Financial continues to provide monthly updates on its credit performance, reflecting its commitment to transparency. Additionally, the company introduced new products like Synchrony Pay Later, which could support future growth. These developments highlight Synchrony Financial’s ongoing efforts to enhance its financial performance and maintain investor confidence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.