Bread Financial Completes $600M Senior Notes Offering
Ticker: BFH-PA · Form: 8-K · Filed: Aug 9, 2024 · CIK: 1101215
| Field | Detail |
|---|---|
| Company | Bread Financial Holdings, INC. (BFH-PA) |
| Form Type | 8-K |
| Filed Date | Aug 9, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.01, $237.6 million, $350.0 million, $78.6 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-offering, financing, notes
TL;DR
Bread Financial just raised $600M via senior notes due 2029. Funds for growth/refi.
AI Summary
On August 9, 2024, Bread Financial Holdings, Inc. filed an 8-K to report the completion of its previously announced offering of senior unsecured notes. The offering consisted of $600 million aggregate principal amount of 7.750% senior unsecured notes due 2029. The net proceeds from the offering are intended to be used for general corporate purposes, including funding potential future acquisitions and refinancing existing debt.
Why It Matters
This offering provides Bread Financial with significant capital, potentially strengthening its financial position and enabling strategic growth initiatives or debt management.
Risk Assessment
Risk Level: medium — The issuance of debt increases financial leverage, which can amplify both gains and losses.
Key Numbers
- $600.0M — Senior Notes Offering (Aggregate principal amount raised)
- 7.750% — Senior Notes Interest Rate (Cost of borrowing for the new debt)
- 2029 — Senior Notes Maturity (Year the debt is due)
Key Players & Entities
- Bread Financial Holdings, Inc. (company) — Registrant
- $600 million (dollar_amount) — Aggregate principal amount of senior unsecured notes offered
- 7.750% (dollar_amount) — Interest rate on the senior unsecured notes
- 2029 (date) — Maturity year of the senior unsecured notes
- August 9, 2024 (date) — Date of the 8-K filing and earliest event reported
FAQ
What is the purpose of the $600 million senior unsecured notes offering?
The net proceeds are intended for general corporate purposes, including potential future acquisitions and refinancing existing debt.
What is the interest rate on the new senior unsecured notes?
The notes carry an interest rate of 7.750%.
When are the senior unsecured notes due to mature?
The notes are due to mature in 2029.
What is the aggregate principal amount of the senior unsecured notes offered?
The aggregate principal amount is $600 million.
What is the filing date of this 8-K report?
The report was filed on August 9, 2024.
Filing Stats: 574 words · 2 min read · ~2 pages · Grade level 12.2 · Accepted 2024-08-09 08:17:58
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share BFH NYSE Indicate by check
- $237.6 million — chase (the "Repurchases") approximately $237.6 million aggregate principal amount of the Notes
- $350.0 million — cash repurchase price of approximately $350.0 million. The final aggregate cash repurchase pr
- $78.6 million — Following such closings, approximately $78.6 million principal amount of the Notes will rema
Filing Documents
- bfh-20240809.htm (8-K) — 25KB
- exhibit991to8-9x24form8xk.htm (EX-99.1) — 13KB
- bfh-20240809_g1.jpg (GRAPHIC) — 20KB
- 0001101215-24-000189.txt ( ) — 219KB
- bfh-20240809.xsd (EX-101.SCH) — 2KB
- bfh-20240809_lab.xml (EX-101.LAB) — 21KB
- bfh-20240809_pre.xml (EX-101.PRE) — 12KB
- bfh-20240809_htm.xml (XML) — 3KB
01 Other Events
Item 8.01 Other Events. On August 9, 2024, Bread Financial Holdings, Inc. (the "Company") announced that it has entered into separate, privately negotiated repurchase agreements with a limited number of holders of its 4.25% Convertible Senior Notes due 2028 (the "Notes") to repurchase (the "Repurchases") approximately $237.6 million aggregate principal amount of the Notes for an aggregate cash repurchase price of approximately $350.0 million. The final aggregate cash repurchase price is subject to adjustment as a portion of the repurchase price will be based in part on the daily volume-weighted average price per share of the Company's common stock over an agreed measurement period beginning on, and including, August 9, 2024. The Repurchases are expected to close shortly after completion of the measurement period, which is expected to be before the end of the current fiscal quarter, subject to the satisfaction of customary closing conditions. Following such closings, approximately $78.6 million principal amount of the Notes will remain outstanding. The Company had previously entered into capped call transactions with certain financial institutions in connection with the issuance of the Notes. All of these transactions are expected to remain in effect notwithstanding the Repurchases.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Document Description 99.1 Press release announcing the partial notes repurchase, dated August 9, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Bread Financial Holdings, Inc. Date: August 9, 2024 By: /s/ Joseph L. Motes III Joseph L. Motes III Executive Vice President, Chief Administrative Officer, General Counsel and Secretary