One Main Financial, a unit of Citigroup, is preparing its first securitization of subprime consumer loans, according to a presale report published Wednesday by Standard & Poor’s.

OneMain Financial Issuance Trust 2014-1 will issue two classes of fixed-rate notes, a $428.95 million of class A notes with a preliminary ‘A’ rating from S&P, and $68.43 million of class B notes with a preliminary ‘BBB’ rating.    

Citigroup is the lead underwriter.

Total “hard” credit enhancement for the A class consists of 24% overcollateralization, a 1% reserve account and 10.25% subordination of the class B notes, for a total of 35.25%, according to the presale report.

OneMain operates the largest consumer loan branch network in the U.S. with approximately 1,149 branches. The pool of collateral backing the 2014-1 issuance trust consists of two types of personal consumer loans:  fixed-rate unsecured loans, which as of Jan. 31 account for 75.82%, and loans secured with a first or second lien on a titled asset, which account for 24.18%.

Over time, the distribution of characteristics in this statistical pool may change as a significant number of additional loans may be added to the loan pool during the revolving period.


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