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Icahn offers to buy CIT notes from holders who vote against plan
By Angela McDaniels
Tacoma, Wash., Oct. 27 - CIT Group Inc. investor Carl Icahn plans to hold a tender offer for some of the company's notes if the exchange offers and pre-packaged plan of reorganization being proposed by CIT fail.
The purchase price under the offer will be $600 per $1,000 principal amount of notes. The notes that will be eligible for the offer are listed in the table below.
Holders who wish to participate in Icahn's offer must cast a vote to reject CIT's plan no later than Oct. 29, according to a news release from the investor.
"Through this offer, Mr. Icahn will essentially provide a free put option to small noteholders, assuring them a floor price in the event the notes trade lower, while allowing them to benefit if the notes trade higher - and thus will seek to neutralize the variety of scare tactics designed by CIT to coerce noteholders into supporting the company's plan," the release stated.
Brokers or financial advisers acting on behalf of noteholders will be paid $5 for each $1,000 principal amount of notes they tender into Icahn's offer.
Icahn said he would be supportive of a well-structured pre-packaged bankruptcy, but he believes that CIT's offer as currently structured provides no protection for noteholders going forward and is likely to result in the "deterioration of value and business as usual for the current board of directors and management."
In light of this, the investor believes a traditional bankruptcy process would result in better long-term value for noteholders.
"CIT, on the other hand has said that it would be disastrous for the company to file for bankruptcy without an approved plan of reorganization - painting a doomsday scenario in which the 'estimated recovery value for general unsecured claims in an accelerated liquidation is between 6 [and] 37 cents per $1.00," Icahn said in the release.
CIT responds
In response, CIT called Icahn's promise to hold his tender offer "ill-defined" and "vague."
The company said in a statement that all bondholders within the same class, "large and small," are treated equally under its plan and noted that senior unsecured bondholders would receive $700 in new secured bonds for every $1,000 of existing bonds in addition to equity consideration.
CIT said it has worked with "a diverse group of bondholders" in developing its comprehensive restructuring plan and believes the plan maximizes its franchise value.
Noteholders with questions about Icahn's offer can contact Vincent Intrieri (212 702-4328) Stephen Mongillo (212 702-4343) or information agent Innisfree M&A Inc. (888 750-5834 or 212 750-5833).
CIT is a New York-based lender to small businesses and middle-market companies.
CIT Group notes eligible for Icahn tender offer
3.85% notes due Nov. 15, 2009
4.63% notes due Nov. 15, 2009
5.05% notes due Nov. 15, 2009
5% notes due Nov. 15, 2009
5% notes due Nov. 15, 2009
5% notes due Nov. 15, 2009
3.95% notes due Dec. 15, 2009
4.8% notes due Dec. 15, 2009
4.7% notes due Dec. 15, 2009
4.85% notes due Dec. 15, 2009
6¼% notes due Dec. 15, 2009
6½% notes due Dec. 15, 2009
4.05% notes due Feb. 15, 2010
5.15% notes due Feb. 15, 2010
5.05% notes due Feb. 15, 2010
6¼% notes due Feb. 15, 2010
6½% notes due Feb. 15, 2010
4.3% notes due March 15, 2010
5.05% notes due March 15, 2010
5.15% notes due March 15, 2010
4.9% notes due March 15, 2010
4.85% notes due March 15, 2010
6½% notes due March 15, 2010
4.45% notes due May 15, 2010
5¼% notes due May 15, 2010
4.3% notes due June 15, 2010
4.35% notes due June 15, 2010
5.3% notes due June 15, 2010
4.6% notes due Aug. 15, 2010
5.45% notes due Aug. 15, 2010
5½% notes due Aug. 15, 2010
4¼% notes due Sept. 15, 2010
5¼% notes due Sept. 15, 2010
5.05% notes due Nov. 15, 2010
5¼% notes due Nov. 15, 2010
5¼% notes due Nov. 15, 2010
5¼% notes due Nov. 15, 2010
5% notes due Dec. 15, 2010
5.05% notes due Dec. 15, 2010
4.9% notes due Dec. 15, 2010
5¼% notes due Dec. 15, 2010
6½% notes due Dec. 15, 2010
6½% notes due Jan. 15, 2011
5.15% notes due Feb. 15, 2011
5.15% notes due Feb. 15, 2011
6.6% notes due Feb. 15, 2011
5.05% notes due March 15, 2011
5% notes due March 15, 2011
4.9% notes due March 15, 2011
5% notes due March 15, 2011
6¾% notes due March 15, 2011
6½% notes due March 15, 2011
5.15% notes due April 15, 2011
5.4% notes due May 15, 2011
5.35% notes due June 15, 2011
5.35% notes due Aug. 15, 2011
5.2% notes due Sept. 15, 2011
5.2% notes due Nov. 15, 2011
5¼% notes due Nov. 15, 2011
5¼% notes due Nov. 15, 2011
5¼% notes due Nov. 15, 2011
4.85% notes due Dec. 15, 2011
5% notes due Dec. 15, 2011
5¼% notes due Feb. 15, 2012
5.15% notes due Feb. 15, 2012
7¼% notes due Feb. 15, 2012
7% notes due Feb. 15, 2012
5% notes due March 15, 2012
5% notes due March 15, 2012
7¼% notes due March 15, 2012
5¾% notes due Aug. 15, 2012
5½% notes due Nov. 15, 2012
5½% notes due Nov. 15, 2012
5½% notes due Dec. 15, 2012
7% notes due Dec. 15, 2012
7¼% notes due Dec. 15, 2012
7.3% notes due Dec. 15, 2012
6.15% notes due Jan. 15, 2013
6¼% notes due Jan. 15, 2013
6.15% notes due Jan. 15, 2013
6¼% notes due Jan. 15, 2013
7½% notes due Jan. 15, 2013
6¼% notes due Feb. 15, 2013
6.2% notes due Feb. 15, 2013
6% notes due Feb. 15, 2013
7.6% notes due Feb. 15, 2013
6.15% notes due Feb. 15, 2013
7¾% notes due March 15, 2013
7.9% notes due March 15, 2013
7¼% notes due March 15, 2013
6% notes due March 15, 2013
6% notes due March 15, 2013
6.1% notes due March 15, 2013
6¼% notes due March 15, 2013
6.15% notes due April 15, 2013
6.15% notes due April 15, 2013
6.05% notes due April 15, 2013
6.05% notes due May 15, 2013
4.95% notes due May 15, 2013
4.95% notes due May 15, 2013
4.88% notes due June 15, 2013
4.85% notes due June 15, 2013
4.6% notes due June 15, 2013
4.45% notes due June 15, 2013
5.05% notes due July 15, 2013
4.65% notes due July 15, 2013
4¾% notes due July 15, 2013
5% notes due July 15, 2013
4¾% notes due July 15, 2013
5.3% notes due Aug. 15, 2013
5½% notes due Aug. 15, 2013
5½% notes due Aug. 15, 2013
5.4% notes due Sept. 15, 2013
5½% notes due Sept. 15, 2013
5¼% notes due Sept. 15, 2013
5.2% notes due Sept. 15, 2013
5.2% notes due Oct. 15, 2013
5.2% notes due Oct. 15, 2013
5¼% notes due Oct. 15, 2013
5.3% notes due Nov. 15, 2013
5.1% notes due Nov. 15, 2013
5.2% notes due Dec. 15, 2013
5.4% notes due Dec. 15, 2013
5.1% notes due Jan. 15, 2014
4.85% notes due Jan. 15, 2014
5% notes due Feb. 15, 2014
4.9% notes due Feb. 15, 2014
7.85% notes due Feb. 15, 2014
7.65% notes due Feb. 15, 2014
4.8% notes due March 15, 2014
4.6% notes due March 15, 2014
7.85% notes due March 15, 2014
4.8% notes due April 15, 2014
5.1% notes due April 15, 2014
5¼% notes due May 15, 2014
5.8% notes due May 15, 2014
5.7% notes due June 15, 2014
5¾% notes due June 15, 2014
5¾% notes due June 15, 2014
5.85% notes due June 15, 2014
6% notes due June 15, 2014
5.65% notes due July 15, 2014
5.3% notes due July 15, 2014
5.2% notes due Aug. 15, 2014
5.3% notes due Aug. 15, 2014
6% notes due Aug. 15, 2014
6% notes due Aug. 15, 2014
5¼% notes due Sept. 15, 2014
5.05% notes due Sept. 15, 2014
4.9% notes due Oct. 15, 2014
5.1% notes due Oct. 15, 2014
5.05% notes due Nov. 15, 2014
5.125% notes due Dec. 15, 2014
5.1% notes due Dec. 15, 2014
5.05% notes due Jan. 15, 2015
4.95% notes due Feb. 15, 2015
4.9% notes due Feb. 15, 2015
7.9% notes due Feb. 15, 2015
5.1% notes due March 15, 2015
5.05% notes due March 15, 2015
5.375% notes due April 15, 2015
5¼% notes due May 15, 2015
5.3% notes due May 15, 2015
5.1% notes due June 15, 2015
5.05% notes due June 15, 2015
5.2% notes due June 15, 2015
5.3% notes due Aug. 15, 2015
5.375% notes due Aug. 15, 2015
5¼% notes due Sept. 15, 2015
5.1% notes due Sept. 15, 2015
5½% notes due Nov. 15, 2015
5.8% notes due Nov. 15, 2015
5¾% notes due Dec. 15, 2015
5.8% notes due Dec. 15, 2015
5.85% notes due March 15, 2016
5.8% notes due March 15, 2016
6% notes due March 15, 2016
5.88% notes due April 15, 2016
6.05% notes due May 15, 2016
6.15% notes due May 15, 2016
6.1% notes due June 15, 2016
6.1% notes due June 15, 2016
6.2% notes due Aug. 15, 2016
6.13% notes due Aug. 15, 2016
6.05% notes due Sept. 15, 2016
5.95% notes due Sept. 15, 2016
6% notes due Nov. 15, 2016
5.95% notes due Nov. 15, 2016
5.8% notes due Dec. 15, 2016
5.65% notes due Dec. 15, 2016
5.7% notes due Dec. 15, 2016
5.7% notes due Dec. 15, 2016
5.85% notes due Feb. 15, 2017
5.95% notes due Feb. 15, 2017
5.85% notes due Feb. 15, 2017
5.8% notes due Feb. 15, 2017
5¾% notes due March 15, 2017
5¾% notes due March 15, 2017
5.7% notes due March 15, 2017
5.65% notes due March 15, 2017
5¾% notes due March 15, 2017
5¾% notes due May 15, 2017
5.8% notes due May 15, 2017
5.8% notes due May 15, 2017
6% notes due June 15, 2017
6% notes due June 15, 2017
6.1% notes due June 15, 2017
6¼% notes due June 15, 2017
6¼% notes due Aug. 15, 2017
6¼% notes due Nov. 15, 2017
6¼% notes due Nov. 15, 2017
6¼% notes due Nov. 15, 2017
6.4% notes due Nov. 15, 2017
6½% notes due Nov. 15, 2017
6½% notes due Dec. 15, 2017
7½% notes due Dec. 15, 2017
7¾% notes due Dec. 15, 2017
7.8% notes due Dec. 15, 2017
6¼% notes due Aug. 15, 2021
6.35% notes due Aug. 15, 2021
6.15% notes due Sept. 15, 2021
6¼% notes due Sept. 15, 2021
6.1% notes due Nov. 15, 2021
6¼% notes due Nov. 15, 2021
5.85% notes due Dec. 15, 2021
5.875% notes due Dec. 15, 2021
5.9% notes due Dec. 15, 2021
6% notes due Dec. 15, 2021
5.95% notes due Feb. 15, 2022
6% notes due Feb. 15, 2022
6% notes due Feb. 15, 2022
6.05% notes due Feb. 15, 2022
5.85% notes due March 15, 2022
5.85% notes due March 15, 2022
5.85% notes due March 15, 2022
5.9% notes due March 15, 2022
5.95% notes due March 15, 2022
6% notes due May 15, 2022
6% notes due May 15, 2022
6% notes due May 15, 2022
6.15% notes due June 15, 2022
6.2% notes due June 15, 2022
6¼% notes due June 15, 2022
6½% notes due June 15, 2022
6½% notes due Aug. 15, 2022
6½% notes due Aug. 15, 2022
6.7% notes due Nov. 15, 2022
6¾% notes due Nov. 15, 2022
6¾% notes due Dec. 15, 2022
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