WASHINGTON (dpa-AFX) - CIT Group Inc. (CIT) announced that it successfully closed a new $2 billion committed revolving credit facility with a syndicate of key relationship banks. The company said that proceeds from the new revolving credit facility and available corporate cash were used to fully repay (at par) and terminate its outstanding $2.5 billion first lien term loan.
The new $2 billion revolving credit facility matures in August 2015 and carries an interest rate ranging from LIBOR + 2.00% to 2.75% (with no floor) based on CIT's long term senior unsecured credit rating.
The revolving credit facility currently benefits from the same collateral and security package as the old first lien term loan; however, upon repayment in full of CIT's outstanding Series A Notes the revolving credit facility will automatically become unsecured, providing the Company with greater flexibility, the company.
Since the beginning of 2010, CIT noted that it has eliminated or refinanced more than $13 billion of first lien and second lien debt, including $7.5 billion of first lien debt, more than $3.5 billion of Series A Notes and its entire $2.1 billion of Series B Notes.
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