OneMain Sells Interest in Joint Venture
EVANSVILLE - Evansville-based OneMain Holdings Inc. (NYSE: OMF) has sold its stake in Delaware-based SpringCastle. The transaction, in which OneMain sold its entire 47 percent interest, is valued at $112 million in cash.
SpringCastle is a joint venture that was formed to purchase a consumer loan portfolio from HSBC in 2013, according to OneMain. The company's interest was sold to affiliates of New York-based New Residential Investment Corp. (NYSE: NRZ) and funds managed by The Blackstone Group LP (NYSE: BX), also based in New York. Both are partners in the joint venture.
"The sale of our SpringCastle investment is an important step toward enhancing our position as America’s premier personal finance company by monetizing what has been an enormously successful investment," said Jay Levine, president and CEO of OneMain Holdings, "Importantly, the sale simplifies our balance sheet, reduces our leverage, and significantly adds to our equity capital. We anticipate a minimal impact on near-term earnings from the transaction and we will continue to earn income for servicing the SpringCastle portfolio."
The transaction closed on Thursday. OneMain says it will continue to service the SpringCastle portfolio through its servicing center in London, Kentucky.