OneMain Finance Corp Prices $600M 7.125% Senior Notes Due 2034, Upsized from $500M
OMF sits 42% above its 52-week low of $45.781.
Summary
OneMain Finance Corp priced a $600 million senior notes offering at 7.125%, upsized from $500 million, with net proceeds of $594 million for general corporate purposes including debt management.
Key Events · Financing and Capital Events · OMF
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$600M Senior Notes Priced at 7.125%
OneMain Finance Corp priced $600 million of 7.125% senior notes due 2034, upsized from the $500 million preliminary filing. The notes were sold at 100% of face value, yielding 7.125% — a spread of 256 basis points over the 4.375% UST due May 15, 2034.
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Net Proceeds of $594 Million
After a 1% gross spread, net proceeds to the issuer are $594 million. The company intends to use the funds for general corporate purposes, which may include debt repurchases or repayments.
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Optional Redemption and Equity Clawback
The notes are callable at a premium starting August 15, 2029 (initially at 103.5625% of principal), with an equity clawback allowing redemption of up to 40% at 107.125% before that date. Prior to August 15, 2029, redemption is at a make-whole premium.
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Sub-Investment Grade Ratings
The notes are rated Ba2 by Moody's, BB by S&P, and BB+ by Kroll, reflecting the company's non-investment grade credit profile.
Analysis · OMF · Finance
OneMain Finance Corp, a subsidiary of OneMain Holdings, priced a $600 million offering of 7.125% senior notes due 2034, upsized from the $500 million initially filed earlier today. The notes were sold at par, yielding 7.125% — a 256 basis point spread over the benchmark Treasury. Net proceeds of $594 million will be used for general corporate purposes, including debt repurchases or repayments. The offering adds to OneMain's leverage but provides liquidity for liability management. The pricing is consistent with the company's sub-investment grade ratings (Ba2/BB/BB+).
At the time of this filing, OMF was trading at $65.03 on NYSE in the Finance sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $45.78 to $71.93. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.