Bread may draw on new credit agreement, as notes offering closes

Chicago, June 13 – Bread Financial Holdings, Inc. may now draw on the credit agreement that was announced on June 7, a $700 million revolver and a $575 million delayed-draw term loan, according to an 8-K filing.

Availability was conditional on the company obtaining at least $1.55 billion in proceeds from a revolving loan (which may include the $700 million revolver listed above), equity or equity-related securities.

The company closed on a $316.25 million convertible offering on Tuesday and met the necessary conditions to free up the loan.

The company also repaid all borrowings outstanding on an earlier existing credit agreement.

As previously reported, interest on the new credit agreement will be SOFR plus CSA and then a margin of 175 basis points to 275 bps.

There is a $700 million accordion.

The maturity date will be three years from signing.

JPMorgan Chase Bank, NA is the administrative agent.

Bread Financial is a Columbus, Ohio-based marketing services provider.

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