Published on 11/13/2023 in the Prospect News High Yield Daily.
New Issue: OneMain sells upsized $400 million add-on to 9% senior notes due 2029
By Marisa Wong
Los Angeles, Nov. 13 – OneMain Finance Corp. priced $400 million of 9% senior notes due Jan. 15, 2029 (Ba2/BB) at 99.5 to yield 9.115%, according to a 424B5 filing with the Securities and Exchange Commission and details from a market source.
The terms of the notes will be identical to the terms of the $500 million of existing 9% notes due 2029 issued on June 22.
As previously reported, the company had initially planned to price a $250 million add-on to the 9% notes due 2029, according to market sources.
The notes become callable beginning on July 15, 2025 at 104.5, with the redemption price stepping down to 102.25 in 2026 and to par in 2027.
The notes are guaranteed by OneMain Holdings, Inc.
BNP Paribas Securities Corp., Mizuho Securities USA Inc., Barclays, Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., NatWest Markets Securities Inc., RBC Capital Markets LLC, Regions Securities LLC, SG Americas Securities LLC, TD Securities (USA) LLC and Truist Securities Inc. are the joint bookrunners.
The Evansville, Ind.-based financial services company plans to use the proceeds to redeem a portion of its 6 1/8% senior notes due 2024.
| Issuer: | OneMain Finance Corp.
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| Guarantor: | OneMain Holdings, Inc.
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| Amount: | $400 million
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| Issue: | Senior notes add-on
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| Maturity: | Jan. 15, 2029
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| Bookrunners: | BNP Paribas Securities Corp., Mizuho Securities USA Inc., Barclays, Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., NatWest Markets Securities Inc., RBC Capital Markets LLC, Regions Securities LLC, SG Americas Securities LLC, TD Securities (USA) LLC and Truist Securities Inc.
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| Trustee: | Wilmington Trust, NA
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP and in-house counsel
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 9%
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| Price: | 99.5
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| Yield: | 9.115%
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| Spread: | 442 bps
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| Call option: | Beginning on July 15, 2025 at 104.5, at 102.25 beginning July 15, 2026 and at par beginning July 15, 2027
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| Pricing date: | Nov. 9
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| Settlement date: | Nov. 14
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| Ratings: | Moody’s: Ba2
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| S&P: BB
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| Price talk: | 99.25 to 99.5
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| Marketing: | Drive-by
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| Total issuance: | $900 million, including $500 million issued on June 22
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