OneMain Holdings, Inc. Announces Closing of $750 Million Social Bond

OneMain Holdings, Inc. (NYSE: OMF) (“OMH”), the country’s largest installment lender serving hardworking Americans with nonprime credit, announced today that its direct, wholly-owned subsidiary OneMain Finance Corporation (“OMFC”) has closed its inaugural Social Bond issuance with an aggregate principal amount of $750 million, the net proceeds of which are committed to serving credit-disadvantaged communities around the country.

This transaction supports OneMain’s continued efforts to provide responsible loans to credit-insecure and credit-at-risk communities as defined by the Federal Reserve Bank of New York. At least 75% of the loans funded by the Social Bond will be allocated to women or minority borrowers as outlined in OneMain’s Social Bond Framework, which is available on OneMain’s Investor Relations website.

“OneMain’s first Social Bond is an important milestone in our mission to improve the financial well-being of hardworking Americans,” said OneMain Chairman and CEO Doug Shulman. “This bond is a testament to our commitment to financial inclusion and reinforces the work we are already doing to provide underrepresented communities with access to safe, affordable credit. We will continue to build our business around serving our customers responsibly, empowering them financially and making a positive social impact on our communities.”

The company leveraged longstanding relationships with diverse broker-dealers to complete this Social Bond transaction, including service-disabled veteran-owned Academy Securities, Inc., woman-owned R. Seelaus & Co., LLC, Hispanic-owned Samuel A. Ramirez & Company, Inc., and woman- and minority-owned Siebert Williams Shank & Co., LLC.

Commitment to Corporate Social Responsibility

OneMain’s Social Bond provides a concrete and measurable funding vehicle to advance the company’s corporate social responsibility program.

About 25% of OneMain’s customers live in “credit-insecure” and “credit-at-risk” counties, as defined by the Federal Reserve Bank of New York. Generally, these counties are more rural, have a higher percentage of non-white residents, have higher poverty rates and their residents earn less when compared to the rest of the United States. OneMain serves these customers responsibly through business practices that include, but are not limited to, the company’s Customer Bill of Rights, Statement on Human Rights and ability-to-pay underwriting.

In addition to personal loans, OneMain offers free financial education opportunities for customers and the wider community in the form of town halls, a library of articles and blogs, and micro-courses on budgeting, savings and credit.

Through philanthropic donations and community partnerships, the company has made investments to support financial literacy, community and economic development, and racial and social justice initiatives – including more than $1 million to pandemic relief efforts in 2020.

Terms of Bond:

Issuer: OMFC

Guarantor: OMH

Amount: $750 million aggregate principal amount of senior notes

Coupon: 3.500%

Maturity: January 15, 2027

Optional redemption: Non-callable until January 15, 2024, with the first call price at par + 50% of coupon, declining ratably to par one year prior to maturity

Current Issue Ratings: Ba3 / BB- / BB+ (Moody’s / S&P / Kroll)

Use of Proceeds: Finance or re-finance, in part or in full, a portfolio of new or existing loans that meet the eligibility criteria of OneMain’s Social Bond Framework

Second-Party Opinion Provider: S&P Global Ratings

• View Second-Party Opinion

Joint Book-Running Managers and Joint Social Bond Structurers and Coordinators:

• BNP Paribas
• Citigroup
• Mizuho Securities

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus.

About OneMain Financial

OneMain Financial (NYSE: OMF) has been offering responsible and transparent loans for over 100 years. With about 1,400 locations throughout 44 states, the company is committed to helping people with their personal loan needs. OneMain and its team members are dedicated to the communities where they live and work.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, OMFC’s intended use of net proceeds from the offering. You should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” in the prospectus supplement related to the offering, in OMH’s and OMFC’s Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020, in OMH’s and OMFC’s subsequent Combined Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and in OMH’s and OMFC’s other filings with the SEC. Neither OMH nor OMFC undertakes any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

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