NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies, today announced that it closed a $753 million equipment lease securitization.
CIT sold six classes of fixed rate notes in a private offering backed by a pool of equipment leases from CIT’s Vendor Finance business segment. The weighted average fixed coupon is 1.45%, which represents a weighted average credit spread of 0.88% over benchmark rates for the six classes of notes. The securitization had a net advance rate of 92.5%. Details of the transaction are as follows:
|Class A-1||Class A-2||Class A-3||Class B||Class C||Class D|
|Weighted Average Life to Call (Years)1||0.39||1.10||1.94||2.66||2.82||2.82|
|Credit Spread to Benchmark||-0.18%||0.35%||0.55%||1.05%||1.90%||3.50%|
|Fixed Rate Coupon||0.4407%||0.85%||1.10%||1.69%||2.55%||4.12%|
1Calculated based on a 7% Conditional Prepayment Rate.
Proceeds from the transaction will be used to refinance an existing conduit and for general corporate purposes. CIT has now completed 18 term equipment securitizations since 2000, 11 of which were backed exclusively by its U.S. vendor finance collateral.
Barclays and Deutsche Bank Securities served as joint bookrunners on the transaction.
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About CIT Vendor Finance
CIT Vendor Finance is a leader in developing business solutions for small businesses and middle market companies for the acquisition of equipment and value-added services. It creates tailored equipment financing and leasing programs for manufacturers, distributors and product resellers across industries that are designed to help them increase sales. Through these programs, it provides equipment financing and value-added services, from invoicing to asset disposition, to meet its customers’ needs.cit.com/vendorfinance
Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $34 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. CIT also operates CIT Bank (Member FDIC), BankOnCIT.com, its primary bank subsidiary, which offers a suite of online savings options designed to help customers achieve a range of financial goals. cit.com