Daily News: May 7, 2012

CIT to Reduce High Cost Debt by Additional $2 Billion


CIT announced that it will redeem $2 billion of its 7% Series C Senior Unsecured Notes (7% Notes) maturing in 2017. Following this redemption, approximately $3.1 billion principal amount of the 7% Notes maturing in 2016 and approximately $1.6 billion principal amount of the 7% Notes maturing in 2017 will remain outstanding.

“We remain committed to reducing our high cost debt and lowering our funding costs as we continue to meet the financing needs of our small business and middle market clients,” said John A. Thain, chairman and chief executive officer.

Including the redemption announced today, CIT will have eliminated or refinanced approximately $26 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 June 4, 2012. As provided under the terms of the 7% Notes, the Company will redeem the outstanding principal balance at par and will be redeemed on a pro-rata basis among all of the 2017 Notes.