OneMain Finance driving by with $400 million 6.25-year notes; initial talk low-8% area

By Paul A. Harris

Portland, Ore., Dec. 11 – OneMain Finance Corp. plans to price a $400 million public offering of senior notes due March 15, 2030 (Ba2/BB) in a Monday drive-by, according to market sources.

The notes will be guaranteed by OneMain Finance’s direct parent company, OneMain Holdings, Inc., but the notes will not be guaranteed by any of OneMain Finance’s subsidiaries, according to a 424B3 filing with the Securities and Exchange Commission.

Initial guidance is in the low-8% area, a trader said.

The 6.25-year notes become subject to an initial call on Dec. 15, 2026 at par plus 50% of the coupon.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Barclays, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., NatWest Markets Securities Inc., RBC Capital Markets LLC, Regions Securities LLC, SMBC Nikko Securities America Inc., SG Americas Securities LLC, TD Securities (USA) LLC, Truist Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

HSBC Bank USA, NA is the trustee.

Counsel to the issuer is provided by Skadden, Arps, Slate, Meagher & Flom LLP and to the underwriters by Simpson Thacher & Bartlett LLP.

The Evansville, Ind.-based financial service provider plans to use the proceeds to redeem the remainder of its outstanding 6 1/8% senior notes and for general corporate purposes, which may include additional debt repurchases and repayments.

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