One month after closing its debut consumer-loan securitization of 2016, OneMain Financial is returning with a second offering of $444.5 million in non-prime and subprime personal loans originated through its branch network.

OneMain Financial Issuance Trust 2016-2 will issue four tranches of 12-year notes totaling $395.6 million that are backed by 64,103 personal loans: $277.8 million of class A notes provisionally rated double-A by DBRS and Kroll Bond Rating Agency; a $48.2 million Class B tranche rated single-A; a $36.7 million Class C tranche rated triple-B; and a $32.9 million Class D tranche rated double-B.

The initial credit enhancement for the Class A notes is 38.5%, consisting of overcollateralization of 11%, a 1% reserve account and 26.5% subordination of the Class B, C and D notes. Class B notes will carry a 27.65% CE.

Many of the pool’s attributes are in line with the seven previous OneMain ABS deals, with an average principal balance of $6,933 in mostly unsecured loans (14.69% are auto secured). The underlying loans carry a weighted average coupon of 26.15% and remaining loan terms of 48 months.

The transaction has a two-year revolving period during which OneMain can add additional collateral. One change from previous securitizations is that OneMain’s reinvestment criteria will place limits on the collateral pool based on FICO scores than its internal OneMain Credit Score profiles; the loans will still be underwritten based on the OneMain scores.  

Wells Fargo is the backup servicer and indenture trustee, as in OneMain’s $555 million 2016-1 transaction in January. The deal is expected to close March 23. 

While OneMain has securitizations dating back to 2014, this is only the second deal since OneMain’s acquisition by Springleaf Financial from Citigroup had been finalized. 

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