CIT Group Inc. : CIT Announces Pricing of $2 Billion of Senior Unsecured Notes
05/01/2012| 09:00pm US/Eastern
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CIT
Group Inc. (NYSE: CIT) cit.com,
a leading provider of financing to small businesses and middle market
companies, today announced the pricing of a registered public offering
of $1.25 billion aggregate principal amount of senior unsecured notes
due 2017 (the "2017 Notes") and $750 million aggregate principal amount
of senior unsecured notes due 2020 (the "2020 Notes," together with the
2017 Notes, the "Notes"). The 2017 Notes priced at par and will bear
interest at a rate of 5.000%. The 2020 Notes priced at par and will bear
interest at a rate of 5.375%. The Notes will be senior unsecured
obligations of CIT, and will not be guaranteed by any of CIT's
subsidiaries. CIT expects the offering to close on or about May 4, 2012,
subject to customary closing conditions.
"This transaction highlights the broad investor interest in CIT's bonds
and further reflects the continued transformation of our funding
profile," said John
A. Thain, Chairman and Chief Executive Officer.
CIT plans to use the net proceeds from the offering of the 2017 Notes
for general corporate purposes and the refinancing of its outstanding 7%
Series C Notes maturing in 2017. CIT plans to use the net proceeds from
the offering of the 2020 Notes for general corporate purposes and the
refinancing of its outstanding 7% Series C Notes maturing in 2016 and/or
2017.
CIT has filed a registration statement with the U.S. Securities and
Exchange Commission (SEC) for the offering of the Notes. Before you
invest, you should read the prospectus supplement and prospectus in that
registration statement and other documents CIT has filed or will file
with the SEC for more complete information about CIT and this offering.
You may obtain these documents for free by visiting EDGAR on the SEC's
Web site at sec.gov.
Alternatively, copies of the final prospectus supplement and
accompanying prospectus for the offering may be obtained by contacting:
BofA Merrill Lynch Syndicate Operations, 4 World Financial Center, Mail
Code: NY3-004-07-09, 250 Vesey Street, 7th Floor, New York,
NY 10080-1305.
The Joint Book-Running Managers for the offering are BofA Merrill Lynch,
Barclays, Credit Suisse, Morgan Stanley and UBS Investment Bank.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of any of
the securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The securities being offered
have not been approved or disapproved by any regulatory authority, nor
has any such authority passed upon the accuracy or adequacy of the
prospectus supplements or the shelf registration statement or prospectus.
Individuals interested in receiving corporate news releases can register
at cit.com/newsalerts or subscribe to the RSS feed at cit.com/rssfeed.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more
than $34 billion in finance and leasing assets. A member of the Fortune
500, it provides financing and leasing capital to its more than one
million small business and middle market clients and their customers
across more than 30 industries. CIT maintains leadership positions in small
business and middle
market lending, factoring,
retail
finance, aerospace,
equipment
and rail
leasing, and global
vendor finance. CIT also operates CIT Bank (Member FDIC), BankOnCIT.com,
its primary bank subsidiary, which offers a suite of online savings
options designed to help customers achieve a range of financial goals. cit.com
Cautionary statement regarding forward-looking statements:
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements (including statements regarding future
financial and operating results) involve risks, uncertainties and
contingencies, many of which are beyond CIT's control, which may cause
actual results, performance, or achievements to differ materially from
anticipated results, performance, or achievements. All statements
contained in this document that are not clearly historical in nature are
forward-looking, and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended to
identify forward-looking statements. Economic, business, funding market,
competitive and/or regulatory factors, among others, affecting CIT's
businesses are examples of factors that could cause actual results to
differ materially from those described in the forward-looking
statements. More detailed information about these factors are described
in CIT's filings with the SEC, including its Annual Report on Form 10-K
for the year ended December 31, 2011. CIT is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.
The following factors, among others, could cause actual results to
differ materially from those expressed or implied in forward-looking
statements: capital markets liquidity; risks of and/or actual economic
slowdown, downturn or recession; industry cycles and trends;
uncertainties associated with risk management, including credit,
prepayment, asset/liability, interest rate and currency risks; estimates
and assumptions used to fair value the balance sheet in accordance with
fresh start accounting and actual variation between the estimated fair
values and the realized values; adequacy of reserves for credit losses;
risks inherent in changes in market interest rates and quality spreads;
funding opportunities, deposit taking capabilities and borrowing costs;
risks that the restructuring of CIT's capital structure did not result
in sufficient additional capital or improved liquidity; risks that CIT
will be unable to comply with the terms of the Written Agreement with
the Federal Reserve Bank of New York; conditions and/or changes in
funding markets and our access to such markets, including secured and
unsecured term debt and the asset-backed securitization markets; risks
of implementing new processes, procedures, and systems; risks associated
with the value and recoverability of leased equipment and lease residual
values; application of fair value accounting in volatile markets;
application of goodwill accounting in a recessionary economy; changes in
laws or regulations governing our business and operations; changes in
competitive factors; demographic trends; customer retention rates;
future acquisitions and dispositions of businesses or asset portfolios;
and regulatory changes and/or developments. CIT undertakes no duty to
update any forward looking statement.
CIT Media Relations:
C.
Curtis Ritter, 973-740-5390
Director of Corporate Communications
Curt.Ritter@cit.com
Matt
Klein, 973-597-2020
Vice President, Media Relations
Matt.Klein@cit.com
or
CIT
Investor Relations:
Ken Brause, 212-771-9650
Executive
Vice President
Ken.Brause@cit.com
© Business Wire 2012
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