CIT to draw on $7.3 billion credit facility

By Sara Rosenberg

New York, March 20 - CIT Group Inc. announced on Friday that it is drawing on its $7.3 billion unsecured credit facility to help liquidity.

Proceeds will be used to repay debt maturing in 2008, including commercial paper, and provide financing to core commercial franchises.

Over the near term, CIT will continue to actively seek additional funding sources, as well as explore and execute on the sale of non-strategic assets and/or business lines.

"Our decision today is a result of the protracted disruption in the capital markets as well as recent actions by the rating agencies," said Jeffrey M. Peek, chairman and chief executive officer, in a company news release.

"It provides us with added flexibility and ensures that our clients have the financing they need to operate and grow their businesses successfully. We are actively positioning CIT to maximize value by optimizing our business portfolio and sizing our company to market conditions," Peek added in the release.

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