We continue to make great progress reducing our funding costs, which better positions CIT to provide the necessary financing support to small businesses and middle market companies – two sectors that remain vital to the recovery of the U.S. economy
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 $1 billion of its 7% Series A Second lien Notes maturing in 2014. In addition to this redemption, CIT also announced that it completed open market repurchases of approximately $400 million of Series A debt in August, including approximately $300 million of 2014 Series A Second lien Notes and $100 million of 2017 Series A Second lien Notes. Following this redemption and debt repurchase, approximately $464 million principal amount of the 2014 Series A Second lien Notes will remain outstanding and approximately $3.1 billion principal amount of the 2017 Series A Second lien Notes will remain outstanding.
“We continue to make great progress reducing our funding costs, which better positions CIT to provide the necessary financing support to small businesses and middle market companies – two sectors that remain vital to the recovery of the U.S. economy,” said John A. Thain, Chairman and Chief Executive Officer.
Including this redemption, CIT will have eliminated or refinanced approximately $14.5 billion of first lien and second lien debt since the beginning of 2010, including $7.5 billion of first lien debt, $4.9 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 September 30, 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 among all of the 2014 Series A Notes.
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. A member of the Fortune 500, 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
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