CIT Prices $3 Billion of Senior Unsecured Notes
CIT Group announced the pricing of a registered public offering of $1.75 billion aggregate principal amount of senior unsecured notes due 2017 and $1.25 billion aggregate principal amount of senior unsecured notes due 2022.
The 2017 Notes priced at par and will bear interest at a rate of 4.25%. The 2022 Notes priced at par and will bear interest at a rate of 5.00%.
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 August 3, 2012, subject to customary closing conditions.
“This is our fourth bond offering this year, which highlights our efforts to further transform our funding profile and reflects the increased investor interest in CIT,” said John A. Thain, chairman and chief executive officer.
CIT plans to use the net proceeds from the offering of the Notes for general corporate purposes and the refinancing of its outstanding 7% Series C Notes due 2016 and/or 2017.
The joint book-running managers for the offering are BofA Merrill Lynch, Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan.