OneMain to sell $500 million 5.5-year social bonds on Tuesday; guidance in high 3%-4% area

By Paul A. Harris

Portland, Ore., June 15 – OneMain Finance Corp. plans to price a $500 million public offering of senior notes due Jan. 15, 2027 (expected ratings Ba3/BB-//Kroll: BB+) in a Tuesday drive-by following a conference call with investors, according to market sources.

The notes are structured in accordance with OneMain's recently published a social bond framework.

Initial guidance has the deal coming to yield in the high 3% to 4% area.

Lead bookrunner BNP Paribas Securities Corp. will bill and deliver. Citigroup Global Markets Inc. and Mizuho Securities USA Inc. are also lead bookrunners.

R. Seelaus & Co. Inc., Samuel A. Ramirez & Co. Inc., Siebert Williams Shank & Co. LLC and Academy Securities Inc. are the joint bookrunners. Other bookrunners include RBC Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC, SG Americas Securities LLC, Truist Securities Inc. and HSBC Securities (USA) Inc.

Natixis Securities Americas LLC is the co-manager.

The notes become callable after Jan. 15, 2024 at par plus 50% of the coupon.

The Evansville, Ind.-based financial services holding company plans to use the proceeds to finance or refinance a portfolio of new or existing personal loans that meet the eligibility criteria of the social bond framework.

Last week the company published that framework and announced that S&P Global Ratings provided a second party opinion on the framework.

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