OneMain Holdings Announces Increase in Share Repurchase Authorization

Rhea-AI Summary

OneMain Holdings has increased its share repurchase authorization from $200 million to $300 million. As of December 13, 2021, the company repurchased 4.6 million shares for $186 million under the previous authorization. The company plans to discuss its future capital return strategy during the upcoming fourth quarter earnings call. The repurchase program will be determined by market conditions and funded by existing cash and future operational cash flow.

Positive

• Increased share repurchase authorization to $300 million, signaling confidence in the company's stock.
• Already repurchased 4.6 million shares for $186 million, indicating active shareholder value return.

Negative

• The share repurchase program is not obligatory and may be suspended or discontinued at any time.

NEW YORK--(BUSINESS WIRE)-- OneMain Holdings, Inc. (NYSE: OMF) (the “Company”) announced today that its Board of Directors has increased the Company’s share repurchase authorization to $300 million from the previously announced $200 million.

As of December 13, 2021, the Company had repurchased 4.6 million shares for $186 million under the existing authorization, including approximately $64 million since September 30, 2021. Pursuant to two separate authorizations, the Company also repurchased approximately 3.6 million shares for $199 million in July and October 2021.

This increase in authorization is expected to bridge the Company to its fourth quarter earnings call, during which the Company plans to further discuss its future capital return strategy.

The timing and amount of any shares repurchased will be determined by the Company based on its evaluation of market conditions and other factors and will be made in accordance with applicable securities laws through open market purchases, block trades and/or privately negotiated transactions or pursuant to a Rule 10b5-1 trading plan. The Company is not obligated to purchase any shares under the program, and the program may be suspended or discontinued at any time. The actual timing, number and share price of shares repurchased will depend on several factors, including the market price of the Company’s stock, general market and economic conditions, and applicable legal requirements. The share repurchase program is expected to be funded by cash on hand and future cash generated from ongoing operations.

About OneMain Holdings, Inc.

OneMain Financial (NYSE: OMF) is the country’s largest nonprime installment lender, with a mission of improving the financial well-being of hardworking Americans. With approximately 1,400 locations throughout 44 states, the Company is committed to helping people with their personal loan needs. OneMain and its team members are dedicated to the communities where they live and work. For additional information, please visit OneMainFinancial.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this release are forward-looking statements. You should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and in the Company’s other filings with the SEC. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211213006099/en/

Investor Contact:

Peter R Poillon, 212-359-2432

peter.poillon@omf.com

Source: OneMain Holdings, Inc.

FAQ

What is the new share repurchase authorization for OneMain Holdings?

OneMain Holdings has increased its share repurchase authorization to $300 million.

How many shares has OneMain Holdings repurchased so far?

As of December 13, 2021, OneMain has repurchased 4.6 million shares for $186 million.

When will OneMain Holdings discuss its future capital return strategy?

OneMain plans to discuss its future capital return strategy during its fourth quarter earnings call.

What factors will determine the timing and amount of shares repurchased by OneMain?

The timing and amount of shares repurchased will depend on market conditions and other factors.

How will OneMain Holdings fund its share repurchase program?

The repurchase program is expected to be funded by cash on hand and future cash generated from operations.