KBRA Assigns Preliminary Ratings to OneMain Direct Auto Receivables Trust 2025-1
9 Jan 2025 | New York
KBRA assigns preliminary ratings to four classes of notes issued by OneMain Direct Auto Receivables Trust 2025-1 (“ODART 2025-1”), an auto loan ABS transaction.
ODART 2025-1 will issue four classes of notes totaling $500.0 million. The preliminary ratings reflect initial credit enhancement levels ranging from 30.25% for the Class A notes to 3.26% for the Class D notes. This transaction represents the first auto loan ABS securitization issued by OneMain Finance Corporation (“OneMain” or “OMFC”, or the “Company”), a wholly-owned subsidiary of OneMain Holdings, Inc. (“OMH”), in 2025. OneMain has also issued 38 auto loan and 30 consumer loan securitizations through its subsidiaries since 2013. ODART 2025-1 includes a five year revolving period during which collections may be used to purchase new collateral so long as it meets the eligibility criteria and reinvestment criteria.
OneMain Holdings, Inc. (“OMH”) is a consumer finance company which offers loan products through a nationwide network of branches and through its online platform. OMH completed its acquisition of OneMain Financial Holdings, LLC on November 15, 2015 from CitiFinancial Credit Company for $4.49 billion in cash. OMH is now listed on the NYSE under the ticker symbol “OMF”.
KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the capital structure using stressed cash flow assumptions. KBRA considered its operational review of OneMain, a swell as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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