Street Calls of the Week
OneMain Holdings, Inc. (NYSE:OMF) announced Wednesday that its direct subsidiary, OneMain Finance Corporation, has issued $800 million in aggregate principal amount of 6.500% senior notes due 2033. The notes were offered and sold in an underwritten public offering, according to a press release statement and a filing with the Securities and Exchange Commission. According to InvestingPro data, OneMain maintains a "GOOD" financial health score, with the company currently managing $22.05 billion in total debt while maintaining a market capitalization of $7.21 billion.
The notes mature on March 15, 2033, and will pay interest at a rate of 6.500% per annum, with payments due semiannually on March 15 and September 15, beginning March 15, 2026. The notes are senior unsecured obligations of OneMain Finance Corporation and are guaranteed on an unsecured basis by OneMain Holdings, Inc. They are not guaranteed by any subsidiaries. It’s worth noting that OneMain has demonstrated strong shareholder returns, currently offering a substantial 6.87% dividend yield.
The notes can be redeemed by OneMain Finance Corporation, in whole or in part, at any time. Prior to September 15, 2028, redemption is subject to a make-whole premium specified in the indenture. After that date, the notes may be redeemed at set percentages of principal: 103.250% in 2028, 101.625% in 2029, and 100.000% in 2030 and thereafter, plus accrued and unpaid interest up to, but not including, the redemption date.
The indenture governing the notes includes covenants that limit the ability to create liens on assets and restrict consolidation, merger, or asset sales. It also outlines customary events of default, such as nonpayment and certain bankruptcy events, which could result in the notes becoming immediately due and payable if triggered. The notes do not have a sinking fund.
The offering was conducted pursuant to a prospectus supplement dated September 3, 2025, and a prospectus dated October 13, 2023, filed as part of a joint registration statement with the SEC. Legal opinions related to the issuance were provided by Jeffrey M. Gershon, Associate General Counsel of OneMain Finance Corporation, and the law firm Skadden, Arps, Slate, Meagher & Flom LLP.
This information is based on a press release statement and the company’s recent SEC filing.
In other recent news, OneMain Holdings reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $1.45, surpassing the forecasted $1.23. However, the company’s revenue slightly missed expectations, coming in at $1.2 billion against a forecast of $1.21 billion. Additionally, OneMain Holdings announced the issuance of $750 million in 6.125% senior notes due 2030 through its subsidiary, OneMain Finance Corporation. The notes, which are senior unsecured obligations, will mature on May 15, 2030, with interest paid semiannually starting November 15, 2025.
In terms of analyst ratings, RBC Capital has reiterated its Outperform rating for OneMain, maintaining a price target of $68.00. Similarly, JMP analyst David Scharf reaffirmed a Market Outperform rating with a $65.00 price target following the company’s second-quarter results. On the other hand, Wells Fargo initiated coverage on OneMain with an Equal Weight rating and a price target of $60.00, citing concerns about non-prime credit in an uncertain macroeconomic environment. These developments highlight the varying perspectives among analysts regarding OneMain’s financial prospects.
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