By Evan Weinberger
New York, Oct. 18 - CIT Group, Inc. priced $600 million in 7.75% senior unsecured mandatory convertible units due Nov. 15, 2015 with a 20.7% initial conversion premium Wednesday night. The mandatories came in at the middle of talk, which was for a distribution of 7.5% to 8% and an initial conversion premium of 17.5% to 22.5%.
Citigroup and Morgan Stanley are joint bookrunners of the registered transaction. There is a $90 million over-allotment option. The settlement date is Oct. 23.
The mandatories have a threshold appreciation price of $42 and a maximum settlement ratio of 0.7147. The minimum settlement ratio is 0.5952.
Holders of the new CIT mandatories will be required to purchase CIT common stock by Nov. 17, 2010. The mandatories have call protection for life and there are no puts. There are standard takeover and dividend protections.
The mandatories will be issued in $25 units; they will trade on the New York Stock Exchange under the symbol CIT PrZ.
CIT is a New York-based commercial and consumer finance company. CIT plans to use the proceeds of the deal for general corporate purposes.
Issuer: CIT Group, Inc.
Issue: Senior unsecured mandatory convertible units
Amount: $600 million
Greenshoe: $90 million
Maturity: Nov. 15, 2015
Distribution: 7.75%
Price: Par
Yield: 7.75%
Conversion premium: 20.7%
Threshold appreciation price: $42.00
Maximum settlement ratio: 0.7147
Minimum settlement ratio: 0.5952
Distribution rate: 7.75%
Bookrunners: Citigroup and Morgan Stanley
Distribution: Registered
| Pricing date: | Oct. 17, after close
|
| Settlement date: | Oct. 23
|
| Symbol: | NYSE: CIT PrZ
|
| Talk: | 7.5%-8% coupon, up 17.5%-22.5%
|
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