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CIT Serves as Sole Lender on $25 Million Revolving Credit Facility for KMS
Thursday, December 3, 2020 09:00 AM

NEW YORK, Dec. 3, 2020 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that its Asset-Based Lending and Sponsor Finance businesses collaborated to serve as agent and sole lender on a $25 million revolving credit facility for KMS, LLC, one of the nation's largest wholesalers of consumer product closeouts and special buys alongside its own line of KMS-sourced products.

Founded in 1976 and based in Wichita, Kansas, KMS purchases excess and reconditioned goods from manufacturers and brands to sell to discount and alternative channel retailers at both the national and local level. The company also has a growing online drop-ship business servicing both wholesale accounts and consumers directly through auction, discount and daily deal websites.

"In this economy, we are continuing to see strong demand for our wide array of general merchandise from clothing, hardware, kitchen appliances, electronics, heaters, air conditioners and much more," said Tom George, CEO of KMS. "We were impressed by CIT's agility and expertise in arranging this financing to support our operations during this important period in our continuing development."

"We appreciated CIT's experience in understanding KMS' business needs and developing the right financing package to support its growth," said Kurt Lentz, Principal at New State Capital Partners, which acquired a majority stake in KMS simultaneous with the closing of the financing.

"With its strong end-markets and history of sales growth, KMS was an excellent candidate for an asset-based financing solution," said Chris Esposito, managing director and group head for CIT's Asset-Based Lending business. "We are pleased to provide the credit facility KMS needed to pursue its business objectives."

CIT's Asset-Based Lending business, part of the company's Commercial Finance division, meets clients' working capital needs by offering innovative structures that reduce funding costs and lower operational risks while improving earnings by leveraging accounts receivable, inventory or fixed assets as collateral.

CIT's Sponsor Finance group provides cash flow and asset based senior debt for private-equity backed transactions in the middle market throughout the United States.

About CIT
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.

About KMS
KMS is one of the largest wholesale resellers of closeout consumer products in the U.S. The Company provides a solution for brands to monetize excess or reconditioned inventory, and supplies off-price and alternative sales channels with branded products at attractive price points. KMS also supplements its supply of closeout products with Company-branded seasonal and in-demand value-priced goods it sources directly. The Company distinguishes itself by providing significant value-added capabilities to deliver an all-inclusive solution to its customers, including re-merchandising and repackaging goods and offering direct-to-consumer drop shipping services.  For more information visit www.kmscloseouts.com.

About New State Capital Partners
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be nimble, decisive and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders, independent sponsors, and others. New State seeks to invest in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, industrials, and consumer. New State can commit more than $50 million of equity capital per transaction, using a variety of investment structures, through New State Capital Partners II, LP. New State and its affiliates have invested in 24 companies to date. For more information visit www.newstatecp.com.

MEDIA RELATIONS: 
John M. Moran
212-461-5507
john.moran@cit.com

SOURCE CIT Group Inc.