CIT Group will meet with lenders this week to arrange $3 billion of first-lien debt as Chief Executive Officer John A. Thain seeks to reduce costs on some of its loans by almost 50%. Bank of America, Deutsche Bank and Morgan Stanley will hold a meeting July 29 in New York to market the five-year loan, Bloomberg reports.

Initial price guidance on the proposed debt is 5 percentage points more than the London interbank offered rate, with a 1.75% LIBOR floor, said the people, who declined to be identified because the terms are private. CIT, which posted its second straight quarterly profit since exiting Chapter 11 protection, needs to lower its cost of funding after arranging the previous loan last year at rates as high as 13 percent to avoid collapse.

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