Bread Financial Holdings, Inc. has announced a public offering of depositary shares that represent a 1/40th interest in its Series A non‑cumulative perpetual preferred stock. The depositary shares carry a $25 liquidation preference, equivalent to $1,000 per preferred share, and the company plans to list the shares on the New York Stock Exchange.
The offering is underwritten by Wells Fargo Securities, J.P. Morgan Securities, Morgan Stanley and RBC Capital Markets. Bread Financial intends to use the net proceeds for general corporate purposes, including potential lending to its subsidiary Comenity Capital Bank and for share repurchases. The transaction is subject to market conditions and regulatory approval, with a final prospectus pending filing with the SEC.
The move follows a strong Q3 2025 earnings report in which Bread Financial posted earnings per share of $4.02 versus a consensus of $2.16, driven by a 5% year‑over‑year increase in credit sales and disciplined cost management. CEO Ralph Andretta highlighted the company’s resilient financial health and disciplined capital allocation, noting that the capital raise will support continued growth and shareholder return initiatives.
Bread Financial has recently completed a $500 million senior notes issuance due 2031, using the proceeds to redeem outstanding notes and increase its share repurchase authorization. The new preferred stock offering expands the company’s equity base and provides additional liquidity, positioning Bread Financial to pursue strategic opportunities and maintain flexibility amid evolving market conditions.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.