Bread Financial Announces Pricing And Upsize Of Private Offering Of $600M Of Senior Notes
Portfolio Pulse from Benzinga Newsdesk
Bread Financial Holdings, Inc. (NYSE:BFH) has upsized its private offering of senior notes from $500 million to $600 million, with a 9.750% interest rate due in 2029. The offering is expected to close on December 22, 2023, with an anticipated net proceed of approximately $592.5 million, after discounts and before expenses. The proceeds will be used to redeem outstanding 4.750% Senior Notes due in 2024, repay existing term loans, and cover related fees and expenses, with any remainder for general corporate purposes. The notes will be guaranteed by the Company's domestic subsidiaries.
December 12, 2023 | 9:12 pm
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Bread Financial Holdings, Inc. has increased its senior notes offering to $600 million, which may strengthen its financial position by allowing for the redemption of higher-cost debt and repayment of term loans.
The upsizing of the offering indicates investor confidence and provides Bread Financial with more capital to manage its debt, potentially reducing interest expenses and improving its balance sheet. This could be viewed positively by investors in the short term, as it suggests proactive financial management and could lead to improved financial metrics.
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