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Weil Advises Citigroup on Securitization of Personal Loans for OneMain Financial Inc.

The transaction is OneMain’s first-ever rated term securitization of personal loans
A Weil team, led by New York partner Frank Nocco, advised Citigroup (Citi) as lead initial purchaser in OneMain Financial Inc.’s (OneMain) $760 million ABS bond offering backed by personal consumer loans. The transaction, which closed on April 17, 2014, is OneMain’s first-ever rated term securitization of personal loans (many of which are unsecured). OneMain is the U.S. personal loans business of CitiFinancial North America which is owned by Citigroup.

So long as certain portfolio criteria are satisfied, the transaction is permitted to revolve, allowing OneMain the flexibility to continue to operate its personal loan business while protecting bondholders from portfolio degradation. Additionally, Wells Fargo serves as back-up servicer and is available to service the personal loans in the event of a servicer default.

The New York-based Weil team advising Citi was led by Frank Nocco, head of the firm’s Structured Finance and Derivatives practice, and included Structured Finance and Derivatives associates Alexander Swartz and Shawn Kodes.

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