CIT Secures $3 Billion Credit Facility

oup Inc. has entered into a $3 billion loan facility provided by a group of the company's major bondholders, the troubled middle-market lender announced Monday. CIT further says it intends to commence a comprehensive restructuring of its liabilities to provide additional liquidity and strengthen its capital position. The $3 billion secured term loan carries a two-and-a-half-year maturity, and $2 billion has been committed and made available. The remaining $1 billion is expected to be committed and made available within 10 days, CIT says. "With today's announcement, our board of directors, management team, advisors, and a steering committee of bondholders, who are lenders under the term loan financing, are now actively focused on a restructuring plan that will better position our company for the long term," said CIT Chair and CEO Jeffrey M. Peek in a company statement. As the first step in its recapitalization plan, CIT has commenced a cash tender offer for its outstanding floating-rate senior notes due Aug. 17 for $825 for each $1,000 principal amount of notes tendered on or before July 31. Lenders in the term loan financing have agreed to tender all of their Aug. 17 notes, the company says. SOUR


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