Bread Financial prices $120M perpetual preferred offering at $25/depositary share, 8.875% initial rate

Filed May 6, 2026 · ~2 min read

Key Changes

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  Bread Financial is offering 4.8 million depositary shares (each representing 1/40th of a share of 8.875% Series B Preferred Stock) at $25 per depositary share, raising net proceeds of $115.3 million for general corporate purposes including potential subsidiary bank capital contributions and share repurchases.

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  The preferred stock pays an initial fixed dividend of 8.875% per annum for five years, then resets every five years to the Five-Year U.S. Treasury Rate plus 4.804 percentage points. Dividends are non-cumulative: if the board does not declare a dividend for any period, it is lost forever with no obligation to pay it later.

  The Offering verify on EDGAR →
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  The Series B Preferred Stock is perpetual equity with no maturity date, redeemable at the company's option (not investors') starting five years from issuance at $25 per depositary share plus declared unpaid dividends. The stock ranks junior to approximately $19.0 billion of consolidated liabilities as of March 31, 2026.

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