Published on 5/12/2020 in the Prospect News High Yield Daily.
New Issue: OneMain/Springleaf prices upsized $600 million 8 7/8% notes at par to yield 8.872%
By Paul A. Harris
Portland, Ore., May 12 – Springleaf Finance Corp., a subsidiary of OneMain Financial Holdings, Inc., priced an upsized $600 million issue of 8 7/8% five-year senior notes (Ba3/BB-/BB+) at par to yield 8.872% in a Tuesday drive-by, according to a market source.
Bookrunners were Barclays (bill and deliver), Citigroup Global Markets Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., NatWest Markets Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC and SG CIB.
The issue size increased from $400 million.
The yield printed tight to yield talk in the 9% area.
The Evansville, Ind.-based financial services provider plans to use the proceeds, including the additional proceeds resulting from the $200 million upsizing of the deal, for general corporate purposes, which may include revolver paydowns.
| Issuer: | Springleaf Finance Corp.
|
| Amount: | $600 million, increased from $400 million
|
| Maturity: | June 1, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Citigroup Global Markets Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., NatWest Markets Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC and SG CIB
|
| Co-managers: | Natixis Securities Americas LLC, Academy Securities Inc., RSEE and Williams Capital Group LP
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8.872%
|
| Spread: | 851 bps
|
| First call: | June 1, 2022 at 104.438
|
| Trade date: | May 12
|
| Settlement date: | May 14
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 9% area
|
| Marketing: | Drive-by
|
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