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
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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.
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