By Paul A. Harris
Portland, Ore., March 8 – Springleaf Finance Corp., which does business as OneMain Financial Holdings Inc., priced a massively upsized $1.25 billion amount of seven-year senior bullet notes (B2/B/B) at par to yield 6 7/8% in a quick-to-market Thursday trade, according to market sources.
The deal was announced at $500 million and subsequently upsized to $750 million.
It priced at the tight end of the 6 7/8% to 7% yield talk and tight to initial guidance in the 7% area.
Barclays was the left bookrunner for the public offering. Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets LLC and SG CIB were the joint bookunners.
The Evansville, Ind.-based lender plans to use the proceeds for general corporate purposes, which may include a partial redemption of the OneMain Financial Holdings 7¼% senior notes due 2021 and other debt repurchases and repayments.
| Issuers: | Springleaf Finance Corp.
|
| Amount: | $1.25 billion, increased from $500 million, then $750 million
|
| Maturity: | March 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets LLC, SG CIB
|
| Co-managers: | Sandler O’Neil, Williams
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 408 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Trade date: | March 8
|
| Settlement date: | March 12
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: B
|
| Distribution: | SEC registered
|
| Price talk: | 6 7/8% to 7%
|
| Marketing: | Quick to market
|
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