Financial services firm CIT Group has announced it will further
reduce its debt, redeeming $2bn ($1.5bn) of its outstanding senior
notes.
The figure takes the total of high-cost debt eliminated or
refinanced by the parent of CIT Vendor Finance since 2010 to
$26bn
Go deeper with GlobalData
The announcement of the $2bn tranche of 7% Series C Senior
Unsecured Notes (7% Notes) maturing in 2017 will leave
approximately $3.1bn of the 7% Notes maturing in 2016 and around
$1.6bn principal amount of the 7% Notes maturing in 2017 still
outstanding.
John Thain, chairman and chief executive officer said: “We
remain committed to reducing our high-cost debt and lowering our
funding costs as we continue to meet the financing needs of our
small business and middle market clients.”
The company has provided a redemption notice for the 7% Notes to
the trustee and intends to complete the redemption on 4 June. As
stipulated by the terms of the 7% Notes, CIT will redeem the
outstanding principal balance at par and will be redeemed on a
pro-rata basis among all of the 2017 Notes.
The group recently reported a
net loss of $447m for Q1 2012 on the back of its debt repayment
and closed a
$753m securitisation backed by its Vendor Finance arm.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
