By redeeming these 2014 Series A Notes we will be able to realize the benefits of our recently completed exchange and consent offers and provide CIT greater financing and operating flexibility.
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 the balance of its 7% Series A Second Lien Notes maturing in 2014 totaling approximately $460 million. After this redemption, most of the restrictive covenants granted under the Series A Second Lien Notes, as part of CIT's restructuring in 2009, will be eliminated. Separately, CIT also announced that it renewed its committed Trade Finance conduit facility at a lower cost and with a longer term. The $550 million facility has a committed revolving period that expires in September 2013 and has a final maturity in November 2013.
“We continue to advance our strategic roadmap,” said John A. Thain, Chairman and Chief Executive Officer. “By redeeming these 2014 Series A Notes we will be able to realize the benefits of our recently completed exchange and consent offers and provide CIT greater financing and operating flexibility.”
Including this redemption, CIT will have eliminated or refinanced $15 billion of first lien and second lien debt since the beginning of 2010, including $7.5 billion of first lien debt, approximately $5.4 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 October 13, 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 financing 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