Bread Financial Launches Preferred Stock Offering, With Bank Funding And Buybacks In View
The credit card lender is selling depositary shares tied to a new Series C preferred, with five banks running the deal.
Bread Financial, which provides credit cards, installment loans and savings accounts to U.S. consumers, launched an underwritten public offering of depositary shares tied to a new Series C preferred stock on Tuesday. The company plans to use the money for general corporate purposes, including funding its subsidiary bank and buying back shares.
How the Series C shares work
Each depositary share represents a 1/40th interest in one share of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C. The liquidation preference is $25 per depositary share, equal to $1,000 per preferred share.
The company expects to apply to list the depositary shares on the New York Stock Exchange. Two earlier preferred series, A and B, already trade there as BFH PrA and BFH PrB, according to the filing.
Where the money would go
Net proceeds are earmarked for general corporate purposes, which may include contributing or lending some or all of the proceeds to Comenity Capital Bank, the company's subsidiary bank, and share repurchases, the company said in its press release.
Morgan Stanley, Keefe, Bruyette & Woods, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities are joint bookrunners. The offering proceeds under an effective shelf registration statement on Form S-3 and a prospectus supplement.
A lender built on brand partners
Bread's core business is co-brand and private label credit cards run with retail and other partners such as Caesars, Dell Technologies, Signet and Ulta. It issues the cards through its banks and lends and services the loans. It also sells its own cards directly, offers Bread Pay installment loans and Bread Savings deposit accounts.
As of December 31, 2025, it had $18.8 billion in credit card and other loans across about 34 million open accounts, according to its annual report.
Completion depends on market and other conditions, and the company said there is no assurance it will complete the deal on the terms described, or at all.
The dividend rate and size of the Series C offering will be set at pricing.
Sources
- 8-K Filing — BREAD FINANCIAL HOLDINGS, INC. (BFH) — SEC EDGAR
- Exhibit exhibit99110-27x2026form8x.htm — BREAD FINANCIAL HOLDINGS, INC. 8-K exhibit — SEC EDGAR
