OneMain Holdings, Inc. Enters Underwriting Agreement for $900.0 Million Senior Notes

On November 4, 2024, OneMain Holdings, Inc. (NYSE: OMF) announced that it had entered into an underwriting agreement with OneMain Finance Corporation for the issuance and sale of $900.0 million in aggregate principal amount of 6.625% Senior Notes due 2029. The underwritten public offering, which closed on November 4, 2024, was conducted pursuant to a registration statement and related prospectus supplement filed with the Securities and Exchange Commission (SEC).

The Underwriting Agreement involves customary representations, warranties, and covenants by both OneMain Finance Corporation and OneMain Holdings, Inc. It also includes provisions for indemnification against certain liabilities and contribution provisions.

OneMain Finance Corporation intends to utilize the net proceeds from the offering for general corporate purposes, which may involve debt repurchases or repayments. The offering engaged certain underwriters and their affiliates, who have previously conducted and may continue to engage in investment banking and other commercial transactions with the company.

Additionally, on November 4, 2024, OneMain Finance Corporation issued the $900.0 million Senior Notes under an Indenture, accompanied by a Supplemental Indenture. The Notes, which mature in 2029, bear interest at a rate of 6.625% per annum, with payments made semiannually starting on May 15, 2025. These senior unsecured obligations rank equally in right of payment to all other existing and future unsubordinated indebtedness.

The Indenture contains covenants that restrict the issuer’s ability to create liens on assets and consolidate or sell its assets. It also outlines customary events of default, with the Trustee or holders of a minimum percentage of outstanding Notes authorized to declare the principal amount due immediately in case of default.

Further details of the Underwriting Agreement and the Senior Notes can be obtained by referring to the full text of the relevant documents as filed with the SEC. Jeffrey M. Gershon and Skadden, Arps, Slate, Meagher & Flom LLP provided legal opinions related to the issuance of the Notes.

This information was disclosed in a Form 8-K filing to the Securities and Exchange Commission by OneMain Holdings, Inc. on November 4, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read OneMain’s 8K filing here.

About OneMain

OneMain Holdings, Inc, a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.