By Paul A. Harris
Portland, Ore., Sept. 17 - Springleaf Finance Corp. priced $950 million of non-callable senior notes (Caa1//B-) on Tuesday, according to a syndicate source.
A $650 million tranche of notes due Oct. 1, 2021 priced at par to yield 7¾%, and a $300 million tranche of notes due Oct. 1, 2023 priced at par to yield 8¼%.
Both tranches printed on top of the respective yield talk.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets and Credit Suisse Securities (USA) LLC are the joint bookrunners.
The Evansville, Ind.-based consumer finance company plans to use the proceeds for general corporate purposes, including the repayment or repurchase of a portion of its outstanding debt.
In a Tuesday press release Springleaf announced that $500 million of the notes due 2021 and $200 million of the notes due 2023 are being issued in a concurrent exchange for $700 million of its outstanding 6.9% medium-term notes, series J, due 2017.
| Issuer: | Springleaf Finance Corp.
|
| Amount: | $950 million
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Call protection: | Non-callable
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 24
|
| Ratings: | Moody's: Caa1
|
| Fitch: B-
|
| Distribution: | Rule 144A with registration rights
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $650 million
|
| Maturity: | Oct. 1, 2021
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 525 bps
|
| Price talk: | 7¾%
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 1, 2023
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 541 bps
|
| Price talk: | 8¼%
|
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