BREAD FINANCIAL LAUNCHES PUBLIC OFFERING

By Chris Stiles • Tuesday, May 05 14:07 • Permanent Link

Bread Financial Holdings said Tuesday it has launched an underwritten public offering of depositary shares tied to a new Series B preferred stock issue.

Each depositary share represents a 1/40th interest in one share of the fixed-rate reset, non-cumulative perpetual preferred stock. The depositary shares carry a liquidation preference of $25 each, or $1,000 per share of Series B preferred stock.

The company said it expects to seek a New York Stock Exchange listing for the depositary shares. It plans to use the net proceeds for general corporate purposes, including possible contributions or loans to its subsidiary bank, Comenity Capital Bank, and share repurchases.

Morgan Stanley, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities and Keefe, Bruyette & Woods are serving as joint bookrunners.

No pricing, size or closing date was disclosed. Following these announcements, the company's shares moved 1.6%, and are now trading at a price of $84.90. If you want to know more, read the company's complete 8-K report here.

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