We continue to make progress evolving our funding model and lowering our cost of capital
NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that it will redeem an additional $2.5 billion of its 7% Series A Second Lien Notes. This redemption will include the approximately $1.1 billion principal amount of remaining 2013 Series A Notes and approximately $1.4 billion principal amount of the 2014 Series A Notes.
“We continue to make progress evolving our funding model and lowering our cost of capital,” said John A. Thain, Chairman and Chief Executive Officer. “Strong investor interest has allowed us to access financing markets at more attractive rates and terms, including our recent $2 billion Series C bond offering and our Vendor Finance conduit renewal, as we focus on growing our businesses and increasing shareholder value.”
Including these redemptions, CIT will have eliminated more than $10 billion of high cost first lien and second lien debt since the beginning of 2010, including $4.5 billion of First Lien debt, $3.5 billion of Series A Notes and its entire $2.1 billion of Series B Notes.
The Company has provided a redemption notice to the trustee and intends to complete the redemption on May 2, 2011. As provided under the terms of the Series A Notes, the redemption price will be 102% of the aggregate principal amount redeemed and the notes will be redeemed on a pro-rata basis.
Additional information on the redemption will be available in a Form 8-K that will be filed with the Securities and Exchange Commission. This, and other filings, can be found on CIT’s Web site, www.cit.com, in the Investor Relations section.
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Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. www.cit.com