OneMain Holdings issues $750 million in 6.125% senior notes due 2030

OneMain Holdings, Inc. (NYSE:OMF), a $6.8 billion market cap financial services company with a robust 7.48% dividend yield, announced Tuesday that its subsidiary, OneMain Finance Corporation, has issued $750 million in aggregate principal amount of 6.125% senior notes due 2030. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, suggesting strong operational stability. The issuance was completed under an indenture agreement originally dated December 3, 2014, and supplemented on Tuesday.

The notes, which are senior unsecured obligations of OneMain Finance Corporation, will mature on May 15, 2030. Interest is set at 6.125% per annum and will be paid semiannually on May 15 and November 15, beginning November 15, 2025. The notes are guaranteed on an unsecured basis by OneMain Holdings, Inc., but are not guaranteed by any subsidiaries of OneMain Finance Corporation. With total debt of $22.05 billion and a debt-to-equity ratio of 6.63, this new issuance adds to the company’s substantial leverage position.

According to the company’s statement, the notes rank equally with all other existing and future unsubordinated indebtedness of OneMain Finance Corporation. They are effectively subordinated to all secured obligations of the issuer to the extent of the value of the assets securing such obligations, and structurally subordinated to all existing and future liabilities of its subsidiaries, other than OneMain Finance Corporation.

The notes may be redeemed at the issuer’s option, in whole or in part, at any time. If redeemed prior to November 15, 2029, the redemption price will be as specified in the indenture. On or after November 15, 2029, the notes may be redeemed at 100% of the principal amount plus accrued and unpaid interest up to, but not including, the redemption date.

The indenture includes covenants that limit the ability of OneMain Finance Corporation to create liens on its assets and restrict its ability to consolidate, merge, or sell assets. It also outlines events of default, including nonpayment, breach of covenants, and certain bankruptcy events. If an event of default occurs, the trustee or holders of at least 25% of the outstanding notes may declare the principal due immediately. The notes do not have the benefit of a sinking fund.

This information is based on a press release statement filed with the Securities and Exchange Commission. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of OneMain Holdings’ financial metrics, including its current P/E ratio of 10.26 and annual revenue of $2.76 billion. The platform’s detailed Pro Research Report provides in-depth analysis of OMF’s financial position among 1,400+ top US stocks.

In other recent news, OneMain Holdings reported its second-quarter 2025 financial results, posting an earnings per share (EPS) of $1.45, which exceeded analyst expectations. The company’s EPS surpassed the forecasted $1.23, marking a 17.89% surprise. Despite the earnings beat, OneMain’s revenue slightly missed projections, coming in at $1.2 billion against an anticipated $1.21 billion. The earnings upside was primarily attributed to credit outperformance. Following these results, JMP analyst David Scharf reiterated a Market Outperform rating for OneMain, maintaining a price target of $65.00. These developments reflect positively on OneMain’s financial performance, as indicated by the analyst’s continued confidence.

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