=OneMain Holdings (OMF) : secondary offering of 7.5 mln shares

OneMain Holdings commences secondary offering of 7.5 mln shares of common stock by selling stockholder -- affiliate of Fortress Investment Group (FIG) 

=OneMain Holdings, Inc. (NYSE: OMF) : sale off the table

• OneMain (OMF) sale off the table
• The company announced today the commencement of a public offering of 10,000,000 shares of its common stock by Springleaf Financial Holdings, an entity owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group (FIG).

Nov 7:
Shares of OneMain Holdings, Inc. (NYSE: OMF) plunged as new disclosure suggests that it backed away from an earlier decision to put itself up for sale. Language in its financial filings suggests that a sale of the business was considered, but is now off the table.


OneMain Holdings stock jumped on Oct. 9 when the Wall Street Journal broke the news that the company was in talks to sell itself, reporting that it was in "advanced discussions with a number of interested parties."

The read-through is that OneMain Holdings considered putting itself up for sale, but is no longer entertaining the option for reasons that were not disclosed.
It could have been as simple as the buyer's inability to locate attractive financing, or as troublesome as concerns over OneMain Holding's underlying loan performance.

Fortress Investment Group (FIG) to be acquired by SoftBank Group for $3.3 billion

Fortress went public on the New York Stock Exchange in 2007, before the financial crisis. Fortress’s stock price is down 80% since it began trading. The stock dipped below $1, and the firm did not consistently return to profitability until 2012.

Under the terms of the deal, Fortress will become an independent subsidiary of SoftBank.

SoftBank will now oversee assets under management of $170 billion, making it one of the largest private investors in the world after the Blackstone Group (BX) , which manages about $330 billion.

SoftBank is known for its technology and telecom holdings with investments in Alibaba, Sprint Nextel Corp. and Yahoo! Japan Corp.

  

Fortress will operate within SoftBank as an independent business headquartered in New York. Fortress manages about $70 billion in assets and invests in real estate, credit and private equity.

“Fortress’s excellent track record speaks for itself, and we look forward to benefiting from its leadership, broad-based expertise and world-class investment platform,” Masayoshi Son, Chairman and CEO of SoftBank Group said in a statement.

In December, after a meeting with then president-elect Donald Trump, Son said SoftBank planned to invest $50 billion in the U.S. economy and add 50,000 jobs. It was not clear if the Fortress acquisition was part of those investment plans.

"This is an investment in America, but it would be premature at this stage to say what the exact job impact will be," SoftBank spokesman Matthew Nicholson said in an email.

In the Fortress deal, each Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on Monday. In addition, each Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed 9 cents a Share.

Pete Briger, Wes Edens and Randy Nardone have agreed to continue to lead Fortress and have committed to invest 50% of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, according to a press release. They have also agreed to vote shares representing 34.99% of the outstanding Fortress voting shares held by them in favor of the transaction.

** charts before  announcement **

** chart 7 months after  announcement **

The SoftBank acquisition was completed in the last week of December, for $3.3 billion to SoftBank Group Corp.

Long trade : FIG (4/16)

Springleaf Holdings (LEAF) changed its name to OneMain Holdings (OMF)

• The company was formerly known as Springleaf Holdings (LEAF) and changed its name to OneMain Holdings (OMF) in November 2015.  
• In March 2015, Indiana financial services company Springleaf entered into an agreement to acquire Baltimore-based personal lender OneMain Financial from Citigroup for $4.25 billion.

    

In 1920, Interstate Finance Corporation was founded in Evansville, Indiana to underwrite sales of Inland Motor Truck vehicles. After several acquisitions, the company became a part of AIG Group in 2001 and was later purchased by Fortress Investment Group (FIG) in 2010. In 2011, the name was changed to Springleaf Financial Services, and in 2015, the company took the OneMain Financial name after the acquisition of OneMain from Citi.

FIG — NR