Daily News: February 3, 2012

CIT Prices $3.25 Billion of Second-Priority Secured Notes


CIT announced the pricing of a private placement of $3.25 billion aggregate principal amount of Series C Second-Priority Secured Notes, consisting of $1.5 billion principal amount due 2015 and $1.75 billion principal amount due 2019.

The 2015 Notes priced at par and will bear interest at a rate of 4.75% and the 2019 Notes priced at par and will bear interest at a rate of 5.50%. The Notes will be obligations of CIT and will be secured by the same collateral that secures CIT’s outstanding Series A Second-Priority Secured Notes and its other Series C Second-Priority Secured Notes.

In addition, the Notes will be guaranteed by the same subsidiaries of CIT that guarantee CIT’s outstanding Series A Second-Priority Secured Notes and its other Series C Second-Priority Secured Notes. The collateral and guarantees for the Notes will be automatically released when the Series A Notes have been paid off in full. CIT expects the offering to close on or about February 7, 2012, subject to customary closing conditions.

CIT plans to use the net proceeds from the offering for general corporate purposes and the refinancing of outstanding indebtedness.