OneMain Readies 2nd Consumer Loan ABS of 2014

July 21, 2014, 2:13 p.m. EDT 1 Min Read

OneMain Financial is readying a $1.18 billion deal backed by personal consumer loan receivables—their second transaction of the year—according to a presale report by Standard & Poor’s.

OneMain Financial Issuance Trust 2014-2’s collateral pool consists of two types of personal consumer loans: fixed-rate unsecured and auto-secured.

The deal’s four tranches include $875 million in class A notes preliminarily rated A’ by S&P. Class B notes worth a total $118.4 million received BBB’ provisional ratings, while $69.08 million of class C notes are BB’. Class D notes totaling $121.7 were preliminarily rated B’. All of the notes are due to mature in September 2024.

Citigroup is the lead underwriter for the deal.

OneMain Financial Issuance Trust 2014-1 came out in April, but contained only two tranches for a total $760 million. S&P rated the $657.5 million of class A notes in that deal A’ and the $102.5 million of class B notes B.’ Both tranches mature in June 2024.

Opening its doors in 1912, OneMain (formerly known as CitiFinancial and Commercial Credit) now operates about 1,141 consumer loan branches across 43 states — the largest such network in the U.S. As of March 31^st, the firm had a personal loan portfolio of $8.0 billion.

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