OneMain Holdings is marketing another $651.7 million of bonds backed by subprime consumer loans, according to rating agency presale reports.

The transaction, called Springleaf Funding Trust 2017-A, will issue four tranches of notes with a final maturity of July 2030. Credit enhancement levels range from 25% for the Class A notes, which are rated double-A by Kroll Bond Rating Agency and DBRS, to 5.35% for the most subordinated bonds, rated double-B.

The transaction includes a three-year revolving period during which additional collateral may be acquired, so long as it meets certain criteria.

In its presale report, Kroll noted that loans backing this deal have a lower weighted average FICO (606) than those backing OneMain’s previous consumer loan deal, completed in December (618).

In addition, the weighted average loan balance is higher ($5,269 vs. $4,748).

Another difference is the longer revolving period of the collateral; the December 2016 deal allows new loans to be acquired for just two years. (In the past, however, Springleaf deals have had revolving periods as long as five years.)

However, credit enhancement is also higher for the A rated tranche (19.25% vs 17.25%) and the BBB rated tranche (13.75% vs 11.6%).

In late 2015, Springfield Holdings, Inc. acquired OneMain Financial Holdings from CitiFinancial Credit Co. and changed its name to OneMain Holdings. Integration of the two companies was completed in the first quarter of this year.

OneMain lends to subprime borrowers, typically with credit scores less than 650. It operates a decentralized branch system in 44 states, and its business model places a heavy emphasis on building relationships with borrowers through frequent communication, according to Kroll. The rating agency noted in its presale report that the firm's management team have an average of 25 years working in financial services.

OneMain transfers operational control of all loans that are three payments overdue to one of its five centralized servicer branches or to Advanced Call Center Transactions, a third-party centralized loan servicer. In the worst possible pool mix, Kroll assumes an early amortization by any number of factors would end the transaction’s revolving period.

Wells Fargo is the backup servicer for the securitized loans in the event of servicer default.

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