Daily News: August 6, 2012

CIT to Reduce High Cost Debt by Additional $3.3 Billion


CIT announced that it will redeem an additional $1.75 billion of its 7% Series C senior unsecured notes (7% notes) maturing in 2016 and the remaining $1.54 billion of 7% notes maturing in 2017. Following this redemption, approximately $680 million principal amount of the 7% notes maturing in 2016 will remain outstanding.

“This redemption is further evidence of our success in eliminating our high cost debt and advancing our liability transformation,” said John A. Thain, chairman and CEO. “Our ability to eliminate or refinance $30 billion of high cost debt in less than three years is a significant accomplishment. We remain focused on eliminating the last of our high cost debt and meeting the financing needs of our small business and middle market clients.”

The company has provided a redemption notice to the trustee and intends to complete the redemption on September 5, 2012. As provided under the terms of the 7% notes, the company will redeem the outstanding principal balance at par. Additionally, the 2016 notes will be redeemed on a pro-rata basis among all of the 2016 notes.