Bread Financial terminates capped call transactions tied to its convertible notes
Bread Financial entered into termination agreements on February 17, 2026, unwinding capped call transactions linked to its 4.25% convertible senior notes issued in June 2023. The company says no notes remained outstanding as of December 31, 2025, and the counterparties will deliver shares of common stock to the company under the agreements, which are expected to settle by the end of February 2026.
Key points
- Agreements dated February 17, 2026 terminate in full the capped call transactions with each option counterparty.
- Hypothetically, settlement at the February 17, 2026 volume-weighted average price would have delivered about 1.5 million shares to the company; the actual number depends on the stock's performance during the unwind period and may be higher
- Settlement is expected one business day after each unwind period ends, with all agreements expected to settle on or before the end of February 2026.
- Shares received will not reduce any existing or future share repurchase authorization.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:01 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on February 18, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.