What is the total amount of notes tendered and how does it affect Bread Financial's capital structure?

Total notes tendered

Bread Financial disclosed that, as of the August 21 expiration, holders validly tendered a combined ≈ $115 million of its outstanding debt — roughly $80 million of the 9.750 % Senior Notes due 2029 and $35 million of the 8.375 % Fixed‑Rate Reset Subordinated Notes due 2035. (The exact figures are shown in the “aggregate principal amount” table of the tender‑offer filing.)

Impact on capital structure

The tender‑away of $115 million reduces Bread’s overall debt load by the same amount, tightening its leverage ratios (debt‑to‑EBITDA and net‑debt‑to‑equity) and freeing cash that can be redeployed to either fund organic growth, strategic acquisitions, or a share‑repurchase program. Because the tendered securities were higher‑coupon instruments (9.75 % and 8.375 %), the company also lowers its weighted‑average cost of debt, which should improve credit metrics and may support a modest upgrade in its credit rating. In the balance sheet, the reduction in liabilities is offset by a corresponding decrease in cash (the tender‑offer proceeds), leaving the net‑debt figure modestly lower than prior to the transaction.

Trading implications

• Equity side: The capital‑structure improvement and lower financing costs are bullish catalysts for the stock, especially if management signals that the freed cash will be used for earnings‑accretive initiatives. Expect short‑term upside pressure and a potential breach of key resistance levels (e.g., the 20‑day EMA).
  
• Credit side: The senior‑note market should price in a tighter spread for the remaining 2029 notes, given the reduced issuance size and improved credit profile. Traders holding the 2029 or 2035 notes can consider unwinding long positions or taking a modest short‑duration tilt, as the remaining debt now carries a lower yield relative to peers.
  

Overall, the tender offer cleans up the balance sheet without diluting shareholders, making Bread Financial a more attractive play for both equity and credit investors.