OneMain Holdings, Inc. Announces Closing of $600 Million Social ABS Bond
May 03 2022 - 2:00PM
Business Wire
OneMain Holdings, Inc. (NYSE: OMF) (“OMH”), the leader in
offering nonprime customers responsible access to credit, has
closed its second Social Bond issuance, a $600 million ABS Bond,
through its direct, wholly-owned subsidiary OneMain Finance
Corporation (“OMFC”).
This transaction is the first ever Social ABS Bond by a U.S.
issuer and supports OneMain’s continued efforts to promote
financial inclusion in underserved communities by providing
equitable access to credit. Loans will be made to borrowers
residing in rural communities, at least 75% of whom are
lower-income borrowers with annual net incomes of less than or
equal to $50,000.
“Our second Social Bond transaction underscores OneMain’s
commitment to individuals in need of responsible credit and builds
on our inaugural Social Bond,” said OneMain Chairman and CEO Doug
Shulman. “Financial inclusion is a key value for our company, and
we remain focused on exploring new and innovative ways to reach
historically underserved borrowers and provide much-needed access
to credit.”
The terms of the ABS bond are more fully outlined in the 2022
ABS Social Bond Framework, and S&P Global Ratings issued a
second party opinion with respect to the framework. Both documents
are available on OneMain’s Investor Relations website.
OneMain leveraged longstanding relationships with diverse
broker-dealers to complete this transaction, including
service-disabled veteran-owned Academy Securities, Inc., and
woman-owned R. Seelaus & Co., LLC, who served as co-managers.
Citigroup Global Markets, Inc., BNP Paribas Securities Corp.,
Mizuho Securities USA LLC, and Natixis Securities Americas LLC
served as joint book-runners.
Commitment to Corporate Social Responsibility
OneMain is committed to helping create long-term, positive
impact for our customers, communities and team members through our
corporate social responsibility program.
In June 2021, OneMain issued its inaugural Social Bond with an
aggregate principal amount of $750 million. The proceeds of this
Social Bond are financing loans in credit-underserved areas of the
United States, as defined by the Federal Reserve Bank of New York.
In addition, at least 75% of the funds in these underserved areas
will be distributed to women or minority borrowers, who
historically have had fewer options for securing credit. In
recognition of this important achievement, OneMain received the
“Social Project Bond of the Year” award from Environmental
Finance.
OneMain has also launched Credit Worthy by OneMain Financial in
partnership with EVERFI. This program provides free financial
education for high school students, with a focus on helping
students understand the importance of credit and develop healthy
credit habits early. By the end of 2022, the Credit Worthy by
OneMain Financial curriculum will be taught in at least 1,500 high
schools.
Bond Details
OneMain Financial Issuance Trust 2022-S1 (“OMFIT 2022-S1”), a
subsidiary of OMFC, issued $600 million principal amount of
asset-backed notes in a social asset-backed securitization pursuant
to Rule 144A under the Securities Act of 1933, as amended.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration (or
exemption therefrom) or qualification under the securities laws of
any such jurisdiction.
The OMFIT 2022-S1 offering has a revolving period of 3-years and
included four classes of fixed rate notes: Class A, Class B, Class
C and Class D notes. DBRS, Inc., Kroll Bond Rating Agency, LLC, and
Standard & Poor’s Rating Services, a Standard & Poor’s
Financial Services, LLC business rated all classes of notes,
assigning ratings of AAA (sf)/ AAA (sf)/ AAA (sf), AAA (sf)/AA
(sf)/AA (sf), AA (sf)/A (sf)/A (sf), BBB (high) (sf)/BBB (sf)/BBB-
(sf), respectively. The notes were priced with a weighted average
fixed interest rate of 4.3% per annum.
About OneMain Holdings, Inc.
OneMain Financial (NYSE: OMF) is the leader in offering nonprime
customers responsible access to credit and is dedicated to
improving the financial well-being of hardworking Americans. We
empower our customers to solve today’s problems and reach a better
financial future through personalized solutions available online
and in 1,400 locations across 44 states. OneMain is committed to
making a positive impact on the people and the communities we
serve. For additional information, please visit
www.OneMainFinancial.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, OMFC’s intended use of net proceeds from the offering.
You should not place undue reliance on any forward-looking
statements contained in this press release. For a discussion of
some of the risks and important factors that could affect such
forward-looking statements, see the sections entitled “Risk
Factors” in OMH’s and OMFC’s Combined Annual Report on Form 10-K
for the fiscal year ended December 31, 2021, in OMH’s and OMFC’s
subsequent Combined Quarterly Report on Form 10-Q for the quarter
ended March 31, 2022 and in OMH’s and OMFC’s other filings with the
SEC. Neither OMH nor OMFC undertakes any obligation to release
publicly any revisions to forward-looking statements made by it to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20220503006106/en/
Media Contact: Kelly Ogburn 410-537-9028
kelly.ogburn@omf.com
Investor Contact: Peter Poillon 212-359-2432
peter.poillon@omf.com
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