By Paul A. Harris
Portland, Ore., June 20 – OneMain Finance Corp. priced a $500 million issue of senior notes due Jan. 15, 2029 (Ba2/BB//Kroll: BB+) at par to yield 9% in a Tuesday drive-by, according to market sources.
The notes are guaranteed by OneMain Holdings Inc.
The yield printed in the middle of official talk and initial guidance, both of which had come in the 9% area.
Books built to $950 million by early afternoon, a sellside source said.
The deal was trading at par bid, par ¼ offered at the Tuesday close, according to this source, who added that a lot big holders of the company’s existing bonds did not play Tuesday’s deal due to a perceived lack of a sufficient market concession.
Active bookrunner Barclays will bill and deliver. SG Americas Securities LLC was also an active bookrunner. Passive bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, NatWest Markets Securities Inc., RBC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC and Truist Securities Inc.
The Evansville, Ind.-based financial services provider plans to use the proceeds for general corporate purposes, which may include debt repurchases and repayments.
| Issuer: | OneMain Finance Corp.
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| Guarantor: | OneMain Holdings Inc.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2029
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| Active bookrunners: | Barclays (bill and deliver) and SG Americas Securities LLC
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| Passive bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, NatWest Markets Securities Inc., RBC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC and Truist Securities Inc.
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| Co-managers: | Deutsche Bank Securities Inc., Natixis Securities Americas LLC and Siebert Williams Shank & Co. LLC
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| Coupon: | 9%
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| Price: | Par
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| Yield: | 9%
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| Spread: | 506 bps
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| First call: | July 15, 2025 at 104.5
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| Trade date: | June 20
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| Settlement date: | June 22
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| Ratings: | Moody’s: Ba2
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| S&P: BB
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| Kroll: BB+
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| Distribution: | SEC registered
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| Price talk: | 9% area
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| Marketing: | Drive-by
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| Cusip: | 682695AA9
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