CIT to Redeem All Remaining High Cost Series C Debt
CIT Group Inc. announced that it will redeem the remaining $681 million of its 7% Series C Senior Unsecured Notes (7% notes) maturing in 2016. The company has eliminated or refinanced nearly $31 billion of high-cost debt since restructuring less than three years ago, which has contributed to a funding cost reduction of approximately 250 basis points along with significantly improved financial and operational flexibility.
“Redeeming all our high cost Series C debt is a significant milestone for CIT,” said John A. Thain, chairman and CEO. “Our dedicated efforts over the past three years to eliminate or refinance nearly $31 billion of debt have materially reduced our cost of capital, strengthened the earnings potential of the business and allowed us to more effectively meet the financing needs of our small business and middle-market clients, which remain the heart of the American economy.”
The company has provided a redemption notice to the trustee and intends to complete the redemption on September 17, 2012. As provided under the terms of the 7% notes, the company will redeem the outstanding principal balance at par.