CIT calls all outstanding $860 million 10.25% notes due 2015 and 2016

By Melissa Kory

Cleveland, Oct. 5 - CIT Group Inc. announced that it will redeem all of its outstanding 10.25% series B second lien notes due 2015 and 2016, totaling $860 million.

The notes will be redeemed on Nov. 4 at 103.5%. Approximately $750 million notes due 2017 will remain outstanding.

"Improving our cost of funds by reducing our existing high cost debt facilitates, our critically important role as a provider of essential financing to small business and middle market companies," John A. Thain, chairman and chief executive officer, said in a press release. "We will continue to proactively improve our cost of capital through repayment or refinancing with lower cost funding as we revitalize the CIT franchise and deepen our support of our clients."

CIT previously announced the redemption of all its outstanding 10.25% series B notes due 2013 and 2014. Combined with the notes due 2015 and 2016, CIT has now announced the redemption of $1.4 billion series B second lien notes.

CIT is a New York-based provider of financing to small businesses and middle-market companies.

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