IEG Holdings (IEGH) announced the commencement of a tender offer to purchase up to all of the outstanding shares of common stock of OneMain Holdings, Inc. in an S-4 filing with the SEC on Thursday. A signal from Trade Ideas alerted CNA Finance to the Form S-4 filing.
IEGH Terms Of The Deal
As specified in its S-4 filing, IEGH is making an offer to exchange IEG Holdings common stock (IEGH) for OneMain shares. In the offer, IEGH is seeking to acquire as many shares of OneMain as possible, up to 100% of OneMain's outstanding common shares, and is willing to accept any number of shares of OneMain stock, even if the shares, in aggregate, constitute less than a majority of OneMain's common stock.
IEGH is offering two shares of its own common stock for each validly tendered share of OneMain common stock.
The offer is scheduled to expire at 12:00 a.m. (midnight), New York City time, on February 6, 2017, unless extended by IEG Holdings. Any extension, delay, termination, waiver, or amendment of the offer will be followed as promptly as practicable by public announcement thereof to be made no later than 9:00 a.m., New York City time, on the next business day after the previously scheduled expiration date. During any such extension, all OneMain shares previously tendered and not properly withdrawn will remain subject to the offer, subject to the rights of a tendering stockholder to withdraw such stockholder’s shares. “Expiration date” means February 6, 2017, unless and until IEG Holdings has extended the period during which the offer is open, in which event the term “expiration date” means the latest time and date at which the offer, as so extended by IEG Holdings, will expire.
Any decision to extend the offer will be made public by an announcement regarding such extension as described under “The Offer—Extension, Termination and Amendment.”
IEGH provides online, unsecured consumer loans under its Mr. Amazing Loans brand in 19 states, offering consumer loans of between $5,000 and $10,000 dollars over a fixed term at interest rates between 19.9% and 29.9%. IEGH plans to expand business into a total of 25 states by mid-2017, offering online loans that are typically funded on the same day an application is filed.
In December of 2016, IEGH reported financial results that demonstrated that its commitment to aggressive cost cutting measures and strategy to target credit-worthy consumers is working. IEGH reiterated its expectation to deliver a profitable Q1 in 2017, recording record loan volumes for the period.
Since January of 2015, IEGH's loan portfolio has grown from $5.5 million dollars to over $14 million dollars, representing growth in excess of 154% as of December 2016.
Additionally, IEGH has launched a private offering of up to $10 million dollars in aggregate principal amount for its 12% senior unsecured notes due December 31, 2026. IEG Holdings is underwriting the offering on its own and intends to utilize the net funds to increase the size of its loan book.
CNA Finance followers will be kept appraised of any further developments of this proposed offering.
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