CIT to Reduce High Cost Debt by Additional $600 Million
CIT announced that it will redeem an additional $600 million of its 7% Series C Senior Unsecured Notes maturing in 2016. Following this redemption, approximately $2.4 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 continue to advance our liability transformation,” said John A. Thain, chairman and CEO. “Following this redemption we will have eliminated or refinanced more than $26.5 billion of high cost debt over the past two-and-a-half years.”
The company has provided a redemption notice for the 7% notes to the trustee and intends to complete the redemption on August 20, 2012. As provided under the terms of the 7% notes, the company will redeem the outstanding principal balance at par on a pro-rata basis among all of the 2016 notes.