NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by OneMain Financial Issuance Trust 2018-1 (“OMFIT 2018-1”), a consumer loan asset-backed securities transaction.
The collateral in the OMFIT 2018-1 deal includes approximately $541.44 million of loans, as of the January 31, 2018 initial cutoff date. The transaction includes a three-year revolving period during which additional collateral may be funded in the transaction so long as it complies with certain eligibility criteria. The preliminary ratings reflect the initial credit enhancement levels ranging from 32.60% for the Class A notes to 3.40% for the Class E notes.
OMH, previously Springleaf, is a consumer finance company which offers loan products through a nationwide network of branches and through its online platform. OneMain was purchased by Springleaf on November 15, 2015. Springleaf completed its acquisition of OneMain from CitiFinancial Credit Company for $4.49 billion in cash and changed its name to OMH. The Company is now listed on the NYSE under the ticker symbol “OMF”. As of December 29, 2017, a private equity fund managed by Fortress indirectly owned approximately a 40.6% economic interest in OMH, through its partial ownership of SFH. On January 3, 2018, OMH entered into a Share Purchase Agreement with an investor group led by funds managed by affiliates of Apollo and Värde. Upon the closing of the Private Sale, the purchaser will own approximately 40.6% of the issued and outstanding shares of common stock of OMH outstanding as of December 29, 2017.
KBRA applied our Global Consumer Loan ABS Rating Methodology as part of our analysis of the transaction’s underlying collateral pool, the proposed capital structure and OneMain’s and Springleaf’s historical annualized gross and net loss data. KBRA also conducted an operational assessment of OneMain, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
For complete details on the analysis, please see KBRA’s pre-sale report, OneMain Financial Issuance Trust 2018-1, which was published today at www.kbra.com.
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Preliminary Ratings Assigned: OneMain Financial Issuance Trust 2018-1 |
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Class |
Preliminary Rating |
Expected Initial Class Principal |
| A | AAA (sf) | $367,640,000 |
| B | AA (sf) | $47,640,000 |
| C | A (sf) | $30,600,000 |
| D | BBB (sf) | $32,220,000 |
| E | BB (sf) | $47,640,000 |
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
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