Contingent Value Rights expire
The board of CIT Group Inc., a provider of financing to small businesses and middle market companies, has authorized the voluntary prepayment of $750 million on its $7.5 billion first lien credit facility.
The company will prepay this high cost debt out of its available holding company cash position, which is in excess of $5 billion. The repayment will be made on February 9, 2010 on a pro rata basis among outstanding tranches and will be subject to the applicable 2% payment premium.
In addition, the company announced that since the terms for distribution of common shares to holders of its Contingent Value Rights (CVRs) were not met as of the February 8, 2010 Measurement Date, they have expired without value.