CIT Has $2 Billion In Financing Committments Under Credit Pact As Of Wed
July 30 2009 - 10:01AM
Dow Jones News
CIT Group Inc. (CIT), the century-old lender, has made certain
amendments to its $3 billion rescue loan, according to a regulatory
filing Thursday.
The company confirmed it has drawn $2 billion of the facility,
which was agreed earlier this month with a group of CIT's six
largest bondholders, including Pacific Investment Management,
Centerbridge, Oaktree, Silver Point and Capital Research.
CIT also laid out terms of the smaller $1 billion portion which
is being syndicated to investors in the filing.
The embattled lender last Friday amended the terms of a cash
tender offer for $1 billion of floating rate notes critical to its
future. The six-strong bondholder group has already agreed to
tender their floating rate notes, the company said previously.
Each new lender on the $1 billion portion of the financing will
tender their floating rate notes.
In a bid to prompt investors to offer their debt to the company
sooner rather than later, CIT increased the early delivery payment
per $1,000 principal amount of the floating-rate notes to $50. CIT
is asking investors to swap those securities for 82.5 cents on the
dollar before July 31. Those who tender after that date will now
only get 77.5 cents instead of 80 cents. The tender offer expires
Aug. 14.
-By Kate Haywood, Dow Jones Newswires; 212-416-2218;
kate.haywood@dowjones.com