Published on 12/8/2014 in the Prospect News High Yield Daily.
New Issue: OneMain prices upsized $1.5 billion senior notes in two tranches
By Paul A. Harris
Portland, Ore., Dec. 8 – OneMain Financial Holdings, Inc. priced $1.5 billion of senior notes (B2/B+/) in an upsized two-part transaction on Monday, according to a syndicate source.
The company priced $700 million of five-year notes at par to yield 6¾% and $800 million of seven-year notes at par to yield 7¼%.
Both tranches came on top of yield talk.
The overall amount of issuance was increased from $1 billion.
Citigroup Global Markets Inc. was the bookrunner.
The notes in both tranches feature investor puts at 101%, which can be triggered by a change of control and downgrades from both rating agencies due to a change of control.
Proceeds will be used to repay inter-company debt from Citigroup. Additional proceeds resulting from the $500 million upsize will be used to repay debt.
OneMain Financial, formerly CitiFinancial, is a Baltimore-based consumer finance company.
| Issuer: | OneMain Financial Holdings Inc.
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Securities: | Senior notes
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Joint lead managers: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Blackstone, ING, MCS, PNC Capital Markets, RBC Capital Markets, RBS Securities Inc., Santander, Drexel Hamilton, Lebenthal, SMBC Nikko, SG CIB
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 508 bps
|
| First call: | Dec. 15, 2016 at 105.063
|
| Equity clawback | 35% at 106.75 until Dec. 15, 2016
|
| Price talk: | 6¾%
|
|
|
| Seven-year notes
|
| Amount: | $800 million
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 523 bps
|
| First call: | Dec. 15, 2017 at 103.625
|
| Equity clawback: | 35% at 107.25 until Dec. 15, 2017
|
| Price talk: | 7¼%
|
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