OneMain to buy back 6.9% notes using proceeds of add-on 6 1/8% notes

By Marisa Wong

Morgantown, W.Va., May 24 – OneMain Holdings, Inc. intends to repurchase about $466 million of its 6.9% medium-term notes, series J, due 2017 using proceeds from an add-on offering of senior notes, according to a prospectus filed with the Securities and Exchange Commission.

Indirect subsidiary Springleaf Finance Corp. is offering an additional $500 million of 6 1/8% senior notes due 2022 with terms identical to its existing $500 million 6 1/8% senior notes due 2022.

Remaining proceeds from the 2022 notes will be used for general corporate purposes, which may include additional debt repurchases and repayments.

OneMain intends to borrow about $280 million of funds from revolving conduit facilities to fund the 2017 notes buyback. The Evansville, Ind.-based consumer finance company expects to repay those borrowings at the same time Springleaf closes its offering of 2022 notes.

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