By Paul A. Harris
Portland, Ore., Dec. 8 – OneMain Finance Corp. priced an upsized $850 million issue of senior notes due Sept. 15, 2030 (Ba3/BB-//Kroll: BB+) at par to yield 4% in a Tuesday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed 12.5 basis points tighter than yield talk in the 4¼% area. Initial guidance was 4 3/8% to 4½%.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Active bookrunners were Deutsche Bank Securities Inc. and Natixis Securities Americas LLC.
Passive bookrunners were Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC and SG Americas Securities LLC.
The Evansville, Ind.-based financial services provider, formerly known as Springleaf Holdings, plans to use the proceeds, together with cash on hand, to redeem $650 million of its outstanding 7¾% senior notes due 2021 and for general corporate purposes.
| Issuer: | OneMain Finance Corp.
|
| Amount: | $850 million, increased from $500 million
|
| Maturity: | Sept. 15, 2030
|
| Securities: | Senior notes
|
| Lead left bookrunner: | RBC Capital Markets LLC (bill and deliver)
|
| Active bookrunners: | Deutsche Bank Securities Inc. and Natixis Securities Americas LLC
|
| Passive bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC and SG Americas Securities LLC
|
| Co-managers: | MUFG and Samuel A. Ramirez & Co. Inc.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 310 bps
|
| First call: | Sept. 15, 2025 at 102
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Kroll: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 4¼% area
|
| Marketing: | Drive-by
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