NEW YORK--(BUSINESS WIRE)--CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of commercial lending and leasing services, today announced that it closed a $750 million equipment lease securitization.
CIT sold five classes of fixed rate notes in a private offering backed by a pool of equipment leases from CIT Equipment Finance. The weighted average fixed coupon is 1.37%, which represents a weighted average credit spread of 0.57% over benchmark rates for the five classes of notes. The securitization had a net advance rate of 92.4%. Details of the transaction are as follows:
|Weighted Average Life to Call||0.42||1.30||2.48||3.32||3.32|
|Credit Spread to Benchmark||0.005%||0.42%||0.57%||0.90%||1.40%|
|Fixed Rate Coupon||0.30%||0.86%||1.50%||2.15%||2.65%|
Proceeds from the transaction will be used for general corporate purposes. CIT has now completed 20 term equipment securitizations since 2000, 16 of which were backed exclusively by its U.S. equipment finance collateral. This transaction represents the second equipment securitization issued by CIT Bank.
Barclays, Credit Suisse, and BofA Merrill Lynch served as joint bookrunners on the transaction. Deutsche Bank Securities and J. P. Morgan served as co-managers on the transaction.
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About CIT Bank
Founded in 2000, CIT Bank (Member FDIC, Equal Housing Lender) is the U.S. commercial bank subsidiary of CIT Group Inc. (NYSE: CIT). It provides lending and leasing to the small business, middle market and transportation sectors. CIT Bank (BankOnCIT.com) offers a variety of savings options designed to help customers achieve their financial goals. As of September 30, 2014, it had more than $14 billion of deposits and more than $20 billion of assets. cit.com/CITBank
About CIT Equipment Finance
CIT Equipment Finance provides leasing and equipment loan solutions to small businesses and middle market companies in a wide range of industries. We provide creative financing solutions to our borrowers and lessees, and assist manufacturers and distributors in growing sales, profitability and customer loyalty
by providing customized, value-added finance solutions to their commercial customers. We offer both capital and operating leases. cit.com/equipmentfinance
Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com
Matt Klein, 973-597-2020
Vice President, Media Relations