Bread Financial Reports April 2025 Credit Performance Metrics

Bread Financial Holdings, Inc. (NYSE: BFH) released key performance indicators for April 2025, reflecting improved credit metrics compared to the prior year despite a slight decline in loan balances.
Highlights:
• End-of-period credit card and other loans:
$17.72 billion (down from $17.89 billion in April 2024)
• Average loan balance:
$17.71 billion (down 2% YoY)
• Net principal losses:
$114 million (down from $127 million YoY)
• Net loss rate:
7.8% (improved from 8.6%)
• 30+ day delinquencies:
$933 million, representing a delinquency rate of 5.7%, down from 6.0% in April 2024
Management noted that delinquencies were previously impacted by temporary relief measures related to hurricanes Helene and Milton in late 2024, which may shift some losses into the second quarter of 2025.
Bread Financial offers consumer credit, lending, and savings solutions and partners with major brands through private label and co-brand credit programs.

Bread Financial Holdings, Inc. Completes $400 Million Subordinated Notes Offering
COLUMBUS, OH – March 10, 2025 – Bread Financial Holdings, Inc. (NYSE: BFH) announced today the successful completion of its $400 million offering of 8.375% Fixed-Rate Reset Subordinated Notes due 2035 (the "Notes"). The Notes were issued under an Indenture agreement dated March 10, 2025, with U.S. Bank Trust Company, National Association serving as trustee.

Key Terms of the Notes
Principal Amount: $400 million
Interest Rate:
8.375% per annum from March 10, 2025, to June 15, 2030
Reset Rate: From June 15, 2030, the interest rate will reset based on the Five-Year U.S. Treasury Rate + 430 basis points.
Payment Frequency: Semiannual payments on June 15 and December 15, starting June 15, 2025.
Maturity Date: June 15, 2035
Ranking:
Subordinated unsecured obligations of the company
Junior in right of payment to all senior indebtedness
Not guaranteed by subsidiaries
Redemption Terms:
The company may redeem the Notes at 100% of the principal amount:
On June 17, 2030
Within 90 days following a regulatory capital treatment event
Strategic & Financial Implications
The completion of this Notes offering strengthens Bread Financial’s capital structure and provides long-term funding flexibility to support the company's growth initiatives and financial commitments. The company will use the proceeds for general corporate purposes, including debt repayment and capital investments.

Risk Factors & Forward-Looking Statements
This announcement includes forward-looking statements, subject to macroeconomic conditions, interest rates, regulatory changes, and financial performance uncertainties. Investors should refer to the Risk Factors section in Bread Financial’s Annual Report (Form 10-K) filed with the Securities and Exchange Commission (SEC).

Bread Financial Holdings, Inc. announced a $150 million share repurchase program authorized by its Board of Directors. Additionally, the company launched a private offering of fixed-rate reset subordinated notes, with at least $250 million of the net proceeds intended to be lent as subordinated debt to its subsidiary, Comenity Capital Bank. The remaining funds may be used for general corporate purposes, including additional share repurchases. The notes will not be registered under the Securities Act of 1933 and will only be available to qualified buyers under exemptions from registration requirements.