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CIT Group offers 5% notes due 2018 in exchange for 5% notes due 2017
New York, Dec. 8 – CIT Group Inc. announced it is offering new 5% senior notes due May 5, 2018 in exchange for its existing $1,208,672,000 of 5% senior notes due May 5, 2017.
The new notes will have the same interest rate, ranking and covenants as the old notes but mature one year later. Beginning on May 15, 2017, they will be callable at 100.5% of par.
CIT is offering $1,000 of new notes per $1,000 of existing notes for holders that tender by the early deadline of 5 p.m. ET on Dec. 21.
The amount includes an early tender payment of $2.50 per $1,000 principal amount.
Holders who tender after the early deadline but before the expiration of 11:59 p.m. ET on Jan. 6 will receive $997.50 of new notes per $1,000 of existing notes.
In addition to the exchange consideration, CIT will also pay accrued interest up to the settlement date, which is expected to be two business days after the early deadline for early tenders and one business day after the expiration for subsequent tenders.
The exchange is being conducted under Rule 144A and Regulation S.
“While we continue to expect the sale of CIT Commercial Air to be completed by the end of the first quarter of 2017, extending the maturity of the notes due in May 2017 will provide financial flexibility and enable CIT to better manage its liquidity profile in the event of an unexpected delay in the sale,” said Carol Hayles, CIT’s chief financial officer, in a news release announcing the offer.
D.F. King & Co., Inc. (800 628-8536, 212 269-5550 or http://www.dfking.com/cit) is information agent and exchange agent.
CIT Group is a New York-based provider of financing, leasing and advisory services primarily to middle-market companies.
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