Bread Financial raises capital with $135M preferred stock offering, restricts common dividends

Filed May 12, 2026 · Period ending May 12, 2026 · ~1 min read

Key Changes

• high

  Issued 5.4 million depositary shares representing 8.875% Series B Preferred Stock with $1,000 liquidation preference per share, raising approximately $135 million through underwriters led by Morgan Stanley.

  Item 3.03, 5.03 verify on EDGAR →
• high

  New preferred stock restricts company's ability to pay common stock dividends or repurchase shares if preferred dividends are missed, creating payment hierarchy that prioritizes preferred shareholders.

  Item 3.03 verify on EDGAR →
• medium

  Series B Preferred is perpetual with no maturity date and non-cumulative, meaning unpaid dividends don't accumulate. The 8.875% rate will reset at a future date per the certificate terms.

  Item 3.03 verify on EDGAR →