A Subprime Lender Wants To IPO

Rob Wile | Jun. 10, 2013, 5:57 PM | 882 |

Springleaf Finance Corp. is talking to banks about doing an initial public offering, WSJ's Mike Spector reports.

The company makes subprime loans primarily for car and home repairs, Spector says. It employs about 3,600 people.

Its parent company is Fortress Investment Group, which bought it in a firesale from AIG in 2010.

Springleaf has recently performed well in debt markets, Spector writes:

One sign of Springleaf's comeback: In May, Springleaf for the first time in many years raised money in the high-yield debt market, a key driver of its business. The company sold $300 million of high-yield bonds, raising $50 million more than it initially sought. Springleaf makes money by borrowing money at lower rates than it charges customers and capturing the difference.

If subprimes are heating up...draw your own conclusions.

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