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CIT Group gets new $4.5 billion senior secured credit facility
By Sara Rosenberg
New York, Oct. 28 - CIT Group Inc. closed on a new $4.5 billion senior secured loan tranche, increasing its existing credit facility to $7.5 billion, according to a news release.
The new $4.5 billion tranche is being provided by a diverse group of lenders, including many of the company's bondholders.
The tranche matures in January 2012 and includes an option to extend all or a portion of the debt for an additional year.
Security for the new tranche is substantially the same assets as the existing $3 billion tranche and any additional collateral that becomes available as a result of the company's refinancing of certain existing secured credit facilities.
Proceeds will be used to refinance a portion of the company's existing secured debt, which may come due as a result of the restructuring, and for general corporate purposes.
Bank of America is the administrative agent on the deal.
The company also said on Wednesday that it had less than one hour to review and accept the commitment letter it received from Carl Icahn for a new $4.5 billion term loan and that, despite several requests for information and multiple deadline extensions, it has yet to receive a signed credit agreement and evidence of Icahn's ability to fund the commitment.
CIT added that as a result of the lack of evidence that Icahn has arranged sufficient funding at this time, its board of directors decided that the best interests of the company and its stakeholders would be served by proceeding with the credit facility provided by a diverse group of lenders.
CIT is a New York-based provider of financing to small businesses and middle market companies.
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