OneMain Holdings Dips Lower After Company Secures $2.4 Billion Of Committed Financing

Shares of OneMain Holdings Inc (NYSE: OMF) were trading lower by nearly 5 percent mid-Monday afternoon after the company earlier disclosed in an 8-K filing it entered into four separate bilateral conduit facilities.

After opening for trading at $29.04, shares of OneMain Holdings sold-off to an intra-day low of $28.12. By mid-afternoon, the stock was trading at $28.29, down 4.23 percent on the day.

OneMain Holdings noted has obtained $2.4 billion of committed financing on a revolving basis from the facilities. The company added that advances may be funded at a rate equal to LIBOR, plus a negotiated spread, or funded by commercial paper conduits through the issuance of promissory notes.

The company noted the new facilities provide "higher advance rates, extend the term of the revolving periods of OneMain Financial's financing arrangements and eliminate certain terms and conditions included in the 2015 Warehouse Facility, including certain cross-default provisions and provisions requiring the absence of a material adverse change as a precondition to funding."