NEW YORK – CIT Group Inc. (NYSE: CIT), a provider of financing to small businesses and middle market companies, has refinanced $3 billion of its first lien debt and prepaid the approximate $1 billion balance of such debt with available corporate cash.
The new $3 billion of first lien debt issued under the amended credit facility matures in August 2015 and carries an interest rate of LIBOR + 4.50% with a 1.75% LIBOR floor.
The company has now repaid $4.5 billion, or 60%, of its original first lien debt and refinanced the balance at a lower cost and with more flexible terms.
Banc of America Securities LLC, Deutsche Bank Securities Inc., and Morgan Stanley Senior Funding Inc. served as joint lead arrangers and joint bookrunners on the refinancing transaction. Bank of America NA will continue to serve as Administrative Agent and Collateral Agent under the first lien credit facility.
Source: CIT Group Inc.