CIT Group extends revolver to 2019, lowers capacity to $1.4 billion

By Wendy Van Sickle

Columbus, Ohio, Feb. 27 – CIT Group Inc. reduced its revolving credit facility to $1.4 billion from $1.5 billion and extended its maturity date to Jan. 25, 2019, via an amendment Monday to its second amended and restated revolving credit agreement dated Feb. 17, 2016 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Additionally, the lenders’ total commitments will further drop to $750 million upon consummation of the sale of CIT’s commercial aircraft leasing business to Avolon Holdings Ltd., which is targeted to close by the end of the first quarter of 2017.

Also upon closing of the sale, the amendment replaces a covenant requiring a $6 billion minimum consolidated net worth of the company and its subsidiaries with a covenant requiring satisfaction of a minimum tier 1 capital ratio of 9%.

At closing of the amendment, no amounts were drawn under the credit agreement, other than about $100 million that was utilized for letters of credit.

Any future borrowings will be used for general corporate purposes.

CIT Group is a New York-based bank holding company.

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