Published on 5/7/2019 in the Prospect News High Yield Daily.
New Issue: OneMain/Springleaf prices upsized $800 million 6 5/8% senior notes due 2028 at par
By Paul A. Harris
Portland, Ore., May 7 – Springleaf Finance Corp., and indirect, wholly owned subsidiary of OneMain Holdings Inc., priced an upsized $800 million issue of senior bullet notes due Jan. 15, 2028 (Ba3/BB-) at par to yield 6 5/8% in a quick-to-market Tuesday transaction, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the high 6% area.
Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Barclays, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, NatWest Investments and SG CIB were the joint bookrunners.
The Evansville, Ind.-based consumer finance company plans to use the proceeds for general corporate purposes, which may include debt repurchases and repayments.
| Issuer: | Springleaf Finance Corp.
|
| Amount: | $800 million, increased from $500 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Barclays, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, NatWest Investments and SG CIB
|
| Co-managers: | Natixis, BNP Paribas Securities Corp., R Seelaus and Williams Capital Group LP
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 421 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Trade date: | May 7
|
| Settlement date: | May 9
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6¾% area
|
| Marketing: | Quick to market
|
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