Moody's rates Springleaf notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Springleaf Finance Corp.'s proposed senior notes due 2021 and 2023. Springleaf's Caa1 corporate family rating and positive outlook are unchanged.

The agency said $500 million of 2021 notes and $200 million of 2023 notes will be issued in a proposed private exchange for $700 million of Springleaf's senior notes due 2017. Up to $150 million of the 2021 notes and up to $100 million of the 2023 notes are being offered in a private placement. Proceeds from the private placement will be used for general corporate purposes, including the repayment or repurchase of outstanding debt.

Springleaf has separately announced intentions to refinance and pay down subsidiary Springleaf Financial Funding Co.'s $1.8 billion term loan due 2017 (B3).

Moody's said Springleaf's Caa1 corporate family rating reflects its evolving operating and funding strategies and uncertain prospects for returning to sustainable levels of profitability.

The positive outlook reflects the agency's expectations that Springleaf will further improve its liquidity and financial performance as it implements its operating and funding strategies.

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