> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Bread Financial Prices $125 Million Of Preferred Shares With A 9.375% Dividend Rate
- URL: https://www.bullished.co/bread-financial-prices-125-million-of-preferred-shares-with-a-9-375-dividend-rate-57f7f1ad/
- Published: 2026-10-27T21:17:14.000Z
- Updated: 2026-10-27T21:17:14.000Z
- Description: The card lender set the offering of 5,000,000 depositary shares at $25 each, with settlement scheduled for November 3, 2026.
- Author: Matteo Parrino
- Tags: SEC Filings, BFH, Industry: Financials, Topic: Capital Raising

[Bread Financial](https://www.bullished.co/tag/bfh/), which issues co-brand and private label credit cards for retail partners, priced an offering of [5,000,000 depositary shares](https://www.sec.gov/Archives/edgar/data/0001101215/000119312526434417/d166831dfwp.htm?ref=bullished.co) at $25 each on Tuesday, for $125 million in total. The shares carry a 9.375% fixed dividend rate until the first reset date of December 15, 2031.

## Terms of the preferred

Each depositary share represents a 1/40th interest in a share of [9.375% Fixed Rate](https://www.sec.gov/Archives/edgar/data/0001101215/000119312526434417/d166831dfwp.htm?ref=bullished.co) Reset Non-Cumulative Perpetual Preferred Stock, Series C. The preferred carries a $1,000 liquidation preference per share, or $25 per depositary share.

The 5,000,000 depositary shares correspond to 125,000 preferred shares. Dividends are non-cumulative and paid quarterly, starting March 15, 2027.

From the first reset date, and every fifth anniversary after it, the rate becomes the Five-Year U.S. Treasury Rate plus 4.535 percentage points. Bread can redeem the preferred starting on the first reset date, or after a regulatory capital treatment event, at $25 per depositary share plus any declared and unpaid dividends. Expected ratings are Ba3 from Moody's and B- from Fitch.

## Proceeds and the overallotment option

The underwriting discount is 3.150% per depositary share, which leaves Bread with $121,062,500 before expenses. The company said net proceeds are intended for general corporate purposes, which may include contributing or lending money to subsidiary Comenity Capital Bank, and for share repurchases.

Underwriters hold a 30-day option on up to 750,000 more depositary shares. Exercised in full, it would lift the offering to 5,750,000 shares and $143.75 million. Morgan Stanley, Keefe, Bruyette & Woods, RBC Capital Markets, UBS Securities and Wells Fargo Securities are the joint book-running managers.

## A card lender's balance sheet

Bread runs cards with partners such as Caesars, Dell Technologies, Signet and Ulta, and also sells Bread Pay installment loans and Bread Savings accounts. As of December 31, 2025, it had $18.8 billion in credit card and other loans across about 34 million open accounts. Its market value was $3.9 billion as of Tuesday.

Settlement is set for November 3, 2026, and Bread intends to apply to list the depositary shares on the New York Stock Exchange under "BFH PrC."

### Sources

- [Form FWP — BREAD FINANCIAL HOLDINGS, INC. (BFH)](https://www.sec.gov/Archives/edgar/data/0001101215/000119312526434417/d166831dfwp.htm?ref=bullished.co) — SEC EDGAR
- [Bread Financial Announces Launch of an Offering of Depositary Shares Representing Interests in Its Series C Preferred Stock | Nasdaq](https://www.nasdaq.com/press-release/bread-financial-announces-launch-offering-depositary-shares-representing-interests-1?ref=bullished.co) — nasdaq.com
- [Bread Financial launches depositary share offering (BFH:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657825-bread-financial-launches-depositary-share-offering?ref=bullished.co) — seekingalpha.com
- [Bread Financial Holdings Inc. stock outperforms competitors on strong trading day](https://www.marketwatch.com/data-news/bread-financial-holdings-inc-stock-outperforms-competitors-on-strong-trading-day-6bc12492-03f7a00adad6?ref=bullished.co) — MarketWatch
- [BFH vs. BAM: Which Stock Is the Better Value Option?](https://finance.yahoo.com/markets/stocks/articles/bfh-vs-bam-stock-better-144002571.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Bread Financial Announces Launch of an Offering of](https://www.globenewswire.com/news-release/2026/10/27/3388970/0/en/bread-financial-announces-launch-of-an-offering-of-depositary-shares-representing-interests-in-its-series-c-preferred-stock.html?ref=bullished.co) — globenewswire.com

### More on Bread Financial

- [Bread Financial Launches Preferred Stock Offering, With Bank Funding And Buybacks In View](https://www.bullished.co/bread-financial-launches-preferred-stock-offering-with-bank-funding-and-buybacks-in-view-0986b241/)
- [Bread Financial's Pretax Income Rose 6%, Yet Net Income Fell 17% On A Tax Swing](https://www.bullished.co/bread-financials-pretax-income-rose-6-yet-net-income-fell-17-on-a-tax-swing-57c11217/)
- [Bread Financial CFO Says Margin 'Probably Peaked' This Year, Sees 2027 Flat To Slightly Down](https://www.bullished.co/bread-financial-cfo-says-margin-probably-peaked-this-year-sees-2027-flat-to-slightly-down-b3d91ae7/)

[All Bread Financial (BFH) coverage →](https://www.bullished.co/tag/bfh/)