CIT continues to redeem itself after bankruptcy
CIT Group (CIT), a provider of financing to business paying rent in commercial properties, announced plans to redeem $500 million of its 7% Series A Second Lien Notes maturing in 2013. After this redemption, approximately $1.6 billion principal amount of the 2013 Series A Notes will remain outstanding, the company said in a statement Thursday. CIT entered bankruptcy in November of 2009 and received $4.5 million in private investment. It began paying back its debts in earnest this year. "The redemption will result in reduced borrowing costs for CIT as we continue to provide much needed credit to small businesses and middle market companies," said chief executive John Thain. "Following this redemption we will have repaid more than $7 billion of first lien and second lien debt over the past 12 months." The redemption will be completed on Jan. 31. The price will be 102% of the aggregate principal amount redeemed and the notes will be redeemed on a pro-rata basis among all of the 2013 Series A Notes. With more than $35 billion in finance and leasing assets, CIT provides capital to more than 1 million small business and middle-market clients. Write to Jacob Gaffney. The author holds no relevant investments.