CIT Group may sell about $325 million of tier 1 qualifying preferreds

By Susanna Moon

Chicago, April 4 – CIT Group Inc. said it is considering the issue of about $325 million of tier 1 qualifying preferred stock.

The issue would allow for an incremental return of an equivalent amount of common equity, according to a company announcement.

Separately, the company sold its commercial aircraft leasing business to Avolon Holdings Ltd., wholly owned subsidiary of Bohai Capital Holding Co. Ltd., for a purchase price of $10.4 billion.

CIT will use proceeds to fund about $3 billion of capital return to shareholders and to redeem $5.8 billion of senior unsecured debt before the end of April.

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

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