CIT Obtains Additional $4.5 Billion in Financing Throug
Expansion of Existing Secured Credit Facility
Addresses Unfunded Financing Proposal from Carl Icahn
October 28, 2009 01:21 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses
market companies, today announced that it has expanded its current $3 billion senior secured credit facility by an additional $4.5 bill
billion tranche, which is being provided by a diverse group of lenders, including many of the Company’s bondholders, will be secure
the same assets as the existing $3 billion tranche and any additional collateral that becomes available as a result of the Company’s re
certain existing secured credit facilities.
“We believe this secured financing will serve the best interests of all stakeholders and will allow us to better position CIT for the futu
M. Peek, Chairman and CEO. “This expanded credit facility will allow us to continue to serve our existing small business and middl
customers as we advance our restructuring plan.”
The new $4.5 billion tranche matures in January 2012, and includes an option for the Company to extend all or a portion of the new
additional year. It is expected to close today and will be used to refinance a portion of the Company’s existing secured indebtednes
come due as a result of the restructuring, and for general corporate purposes.
The Company also addressed a commitment letter received yesterday from Carl Icahn to provide CIT a new $4.5 billion term loan.
Icahn and his advisors had been in discussions with the Company for several days and were fully aware of CIT’s deadline, they pro
Company less than one hour to review and accept his commitment letter. Additionally, despite several requests from the Company f
multiple deadline extensions, the Company has yet to receive a signed credit agreement and evidence of Mr. Icahn’s ability to fund t
As a result of the lack of evidence that Mr. Icahn has arranged sufficient fu