OneMain Financial, formerly known as Citifinancial, is preparing a $1.18 billion securitization deal. About $261 million — or 22% — of the issuance is backed by auto loans, according to a presale report from Standard & Poor’s. The remainder is backed by unsecured loans.
The transaction is the bank’s second this year.
The securitization has four tranches: $875 million of Class A notes, with a preliminary A rating from S&P; $118.43 million of Class B notes, with a BBB preliminary rating; $69.08 million of Class C notes rated BB; and $121.71 of Class D notes, with a preliminary rating of B. All four tranches mature on Sept. 8, 2024.
OneMain Financial’s first securitization this year, offered in April, consisted of $760 million in unsecured and auto-secured loans and had only two tranches.
OneMain’s target demographic is described as nonprime or subprime, and has an average credit score ranging from the high 500s to high 600s, according to the report. This month’s ABS offering has a weighted average Fico, at origination, of 641, unchanged from the April deal.
OneMain Financial has 1,141 branches across 43 states, and a personal loan portfolio of more than $8 billion, as of March 31.
