CIT Cuts Additional $1.6 Billion of High Cost Debt
CIT Group announced it will redeem the entire balance of its 7% Series C senior unsecured notes maturing in 2015 totaling approximately $1.6 billion. CIT said following this redemption, approximately $3.1 billion principal amount of the 7% notes maturing in 2016 and approximately $4.1 billion principal amount of the 7% notes maturing in 2017 will remain outstanding.
“We will continue to focus on refinancing our remaining high-cost debt and advancing the transformation of our funding profile,” said John A. Thain, chairman and chief executive officer.
Including this redemption, CIT will have eliminated or refinanced approximately $23.5 billion of high cost debt since the beginning of 2010. The company has provided a redemption notice for the 7% Notes to the trustee and intends to complete the redemption on April 16, 2012. As provided under the terms of the 7% Notes, the Company will redeem the outstanding principal balance at par.