Bread Financial Launches Series C Preferred Offering, Eyes Buybacks
BFH sits 71% above its 52-week low of $59.26.
Summary
Bread Financial launched an underwritten public offering of depositary shares, each representing a 1/40th interest in a new Series C fixed-rate reset non-cumulative perpetual preferred, with a $25 liquidation preference per depositary share. The depositary shares are expected to list on the NYSE, with Morgan Stanley, KBW, RBC, UBS and Wells Fargo as joint bookrunners. Proceeds are earmarked for general corporate purposes, which may include funding Comenity Capital Bank and share repurchases. This is the second preferred issuance this year, following the May offering that also flagged buyback funding, and it comes days after a Q3 beat ($3.84 adjusted EPS vs $3.26 consensus) and a 10-Q showing an 18.89% net interest margin. Preferred capital is non-dilutive to common but adds a dividend obligation ahead of common holders; the buyback angle is the part that supports the common. Coupon, size, and pricing are not yet disclosed, and the company notes completion is subject to market conditions.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Bread Financial's Series C depositary shares carry a $25 liquidation preference (1/40th per preferred share) and are expected to list on the NYSE; Morgan Stanley, KBW, RBC, UBS and Wells Fargo are joint bookrunners.
At the time of this announcement, BFH was trading at $101.22 on NYSE in the Finance sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $59.26 to $114.53. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.