CIT to Reduce High Cost Debt by Additional $500 Million
CIT Group Inc. announced that it will redeem $500 million of its 7% Series C Senior Unsecured Notes maturing in 2017. Following this redemption, approximately $3.6 billion principal amount of the notes maturing in 2017 and approximately $3.1 billion principal amount of the notes maturing in 2016 will remain outstanding.
“We will continue to eliminate or refinance our remaining high-cost debt as we work to further improve our funding profile,” said John A. Thain, chairman and CEO.
Including this redemption, as well as the approximately $1.6 billion redemption of 7% Series C Senior Unsecured Notes maturing in 2015 the company announced on March 15, 2012, CIT will have eliminated or refinanced approximately $24 billion of high cost debt since the beginning of 2010.
The company has provided a redemption notice for the notes to the trustee and intends to complete the redemption on May 2, 2012. As provided under the terms of the 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.