WASHINGTON (dpa-AFX) - CIT Group Inc. (CIT) said Tuesday that it will redeem all of its nearly $4 billion of remaining 7% Series A Second-Priority Secured Notes including about $1 billion principal amount of the Notes maturing in 2016 and about $2.9 billion principal amount of the Notes maturing in 2017.
'This is a significant milestone for CIT,' said John Thain, Chairman and Chief Executive Officer. 'The elimination of our remaining Series A Notes will result in a largely unencumbered balance sheet as our Series C Notes and revolving credit facility will become unsecured. These efforts will improve our financial flexibility as we continue to provide much needed financing to the small business and middle market sectors.'
Including the Series A redemption announced today, CIT said it will have eliminated or refinanced about $22 billion of first lien and second lien debt since the beginning of 2010, including $7.5 billion of first lien debt, its entire $12.3 billion of Series A Second-Priority Secured Notes and its entire $2.1 billion of Series B Second-Priority Secured Notes.
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