Bread Financial upsizes senior notes offering to $300 million

COLUMBUS, Ohio – Bread Financial Holdings, Inc. (NYSE: BFH), a financial services company, has upsized its offering of senior notes, increasing the total amount from the initially announced $200 million to $300 million.

The 9.75% senior notes due 2029, which are an addition to a previous issuance, will be sold at 101% of their principal value. The closing of this transaction is anticipated to occur on January 19, 2023, subject to customary closing conditions.

The additional funds from the offering are intended to be used by Bread Financial to redeem $400 million of the company’s outstanding 7.000% Senior Notes due in 2026, along with paying related fees, premiums, and expenses. The remainder is expected to be covered by the company’s available cash.

These newly issued notes are a continuation of the company’s existing 9.750% Senior Notes due 2029, which were originally issued on December 22, 2023, with an aggregate principal amount of $600 million. The additional notes and the existing notes will be treated as a single series with identical terms, excluding the issue date and initial offering price.

The notes will be guaranteed by Bread Financial’s domestic subsidiaries that also guarantee the company’s current senior notes and senior credit facilities. However, these notes will not be registered under the Securities Act or any state securities laws, and they were offered only to qualified institutional buyers in accordance with Rule 144A or to non-U.S. persons outside the United States in compliance with Regulation S.

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