Actionable news
0
All posts from Actionable news
Actionable news in LEAF: SPRINGLEAF HOLDINGS Inc,

Springleaf Holdings Reaches Settlement With The U.S. Department Of Justice; Clears Way For Acquisition Of Onemain Financial

The following excerpt is from the company's SEC filing.

Expects 2017 Core Earnings of $830 - $900 Million

EVANSVILLE, Ind.--(BUSINESS WIRE)-- Springleaf Holdings, Inc. (NYSE:LEAF), a leading personal finance company providing loan products to customers nationwide, today announced that it has reached a settlement with the U.S. Department of Justice (DOJ) and the state Attorneys General of seven states that will allow the company to proceed with closing its previously announced acquisition of OneMain Financial Holdings, LLC. The details of the settlement have been filed with the U.S. District Court, Washington, D.C., whose approval of a stipulated asset preservati on order is required prior to closing. The company anticipates obtaining that approval shortly and proceeding with closing immediately thereafter.

Under the terms of the agreement with the DOJ and the state Attorneys General, Springleaf will sell 127 branches in 11 states. The company has entered into an agreement with Lendmark Financial Services of Covington, Georgia, to sell the branches to Lendmark. These branches represent 6% of the company's branches and $608 million, or 4%, of the company's receivables, on a pro forma basis for the combined company as of December 31, 2014. The sale to Lendmark is expected to close on or about April 1, 2016.

Jay Levine, President and Chief Executive Officer of Springleaf, said, "The transformational combination of Springleaf and OneMain will create the premier personal finance business in the United States, with branches across 43 states and 2.4 million customers. This will be a company that we believe is financially strong, committed to responsible lending and positioned for future growth. In addition, we share similar cultures and values, including excellence in customer service and a deep commitment to the local communities that we serve. We look forward to welcoming OneMain's talented team members to the Springleaf family, and to creating even greater value for all stakeholders."

Commenting on the company's outlook, Levine added, "Reflecting the significant earnings power of the new combined company, we expect to generate core net income of $830 million to $900 million, or $6.20 to $6.70 per share in 2017."

The combined company will be led by Jay Levine, with the executive management team including leaders from both Springleaf and OneMain. The company will be renamed OneMain Holdings, Inc., which is expected to occur on the closing of the acquisition. The company has applied to the New York Stock Exchange to change its ticker symbol to "OMF" and expects to begin trading under the new symbol on November 27, 2015.

The combined company will have nearly 1,850 branches in 43 states following the sale of the branches to Lendmark, along with significant presences in Evansville, Indiana and Baltimore, Maryland. The company will also maintain key operations in Wilmington, Delaware; Chicago, Illinois; London, Kentucky; Mendota Heights, Minnesota; Tempe, Arizona; Fort Mill, South Carolina; Irving and Fort Worth, Texas, and Greenwich, Connecticut.

Conference Call & Webcast Information

Springleaf management will host a conference call and webcast to discuss today's announcement at 12:00 pm Eastern on Friday, November 13, 2015. Both the call and webcast are open to the general public. The general public is invited to listen to the call by dialing 877-330-3668, (U.S. domestic), or 678-304-6859 (international), conference ID 80715948 or via a live audio webcast through the Investor Relations section of the website. For those unable to listen to the live broadcast, a replay will be available on our website or by dialing 800-585-8367, (U.S...


More