{"id":505567,"date":"2021-06-22T11:04:08","date_gmt":"2021-06-22T15:04:08","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/onemain-holdings-inc-announces-closing-of-750-million-social-bond\/"},"modified":"2021-06-22T11:04:08","modified_gmt":"2021-06-22T15:04:08","slug":"onemain-holdings-inc-announces-closing-of-750-million-social-bond","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/onemain-holdings-inc-announces-closing-of-750-million-social-bond\/","title":{"rendered":"OneMain Holdings, Inc. Announces Closing of $750 Million Social Bond"},"content":{"rendered":"

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OneMain Holdings, Inc. Announces Closing of $750 Million Social Bond<\/b><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nOneMain Holdings, Inc. (NYSE: OMF) (\u201cOMH\u201d), the country\u2019s largest installment lender serving hardworking Americans with nonprime credit, announced today that its direct, wholly-owned subsidiary OneMain Finance Corporation (\u201cOMFC\u201d) has closed its inaugural Social Bond issuance with an aggregate principal amount of $750 million, the net proceeds of which are committed to serving credit-disadvantaged communities around the country.\n<\/p>\n

\nThis transaction supports OneMain\u2019s continued efforts to provide responsible loans to credit-insecure and credit-at-risk communities as defined by the Federal Reserve Bank of New York. At least 75% of the loans funded by the Social Bond will be allocated to women or minority borrowers as outlined in OneMain\u2019s Social Bond Framework<\/a>, which is available on OneMain\u2019s Investor Relations website<\/a>.\n<\/p>\n

\n\u201cOneMain\u2019s first Social Bond is an important milestone in our mission to improve the financial well-being of hardworking Americans,\u201d said OneMain Chairman and CEO Doug Shulman. \u201cThis bond is a testament to our commitment to financial inclusion and reinforces the work we are already doing to provide underrepresented communities with access to safe, affordable credit. We will continue to build our business around serving our customers responsibly, empowering them financially and making a positive social impact on our communities.\u201d\n<\/p>\n

\nThe company leveraged longstanding relationships with diverse broker-dealers to complete this Social Bond transaction, including service-disabled veteran-owned Academy Securities, Inc., woman-owned R. Seelaus & Co., LLC, Hispanic-owned Samuel A. Ramirez & Company, Inc., and woman- and minority-owned Siebert Williams Shank & Co., LLC.\n<\/p>\n

Commitment to Corporate Social Responsibility<\/b><\/p>\n

\nOneMain\u2019s Social Bond provides a concrete and measurable funding vehicle to advance the company\u2019s corporate social responsibility program.\n<\/p>\n

\nAbout 25% of OneMain\u2019s customers live in \u201ccredit-insecure\u201d and \u201ccredit-at-risk\u201d counties, as defined by the Federal Reserve Bank of New York. Generally, these counties are more rural, have a higher percentage of non-white residents, have higher poverty rates and their residents earn less when compared to the rest of the United States. OneMain serves these customers responsibly through business practices that include, but are not limited to, the company\u2019s Customer Bill of Rights<\/a>, Statement on Human Rights<\/a> and ability-to-pay underwriting.\n<\/p>\n

\nIn addition to personal loans, OneMain offers free financial education opportunities for customers and the wider community in the form of town halls, a library of articles and blogs, and micro-courses on budgeting, savings and credit.\n<\/p>\n

\nThrough philanthropic donations and community partnerships, the company has made investments to support financial literacy, community and economic development, and racial and social justice initiatives \u2013 including more than $1 million to pandemic relief efforts in 2020.\n<\/p>\n

Terms of Bond:
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<\/b>Issuer: OMFC
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Guarantor: OMH
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Amount: $750 million aggregate principal amount of senior notes
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Coupon: 3.500%
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Maturity: January 15, 2027
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Optional redemption: Non-callable until January 15, 2024, with the first call price at par + 50% of coupon, declining ratably to par one year prior to maturity
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Current Issue Ratings: Ba3 \/ BB- \/ BB+ (Moody\u2019s \/ S&P \/ Kroll)
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Use of Proceeds: Finance or re-finance, in part or in full, a portfolio of new or existing loans that meet the eligibility criteria of OneMain\u2019s Social Bond Framework
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Second-Party Opinion Provider: S&P Global Ratings\n<\/p>\n