CIT Group to redeem additional $1 billion of 7% second-lien notes

By Toni Weeks

San Diego, Aug. 31 - CIT Group Inc. announced it will redeem an additional $1 billion of its 7% series A second-lien notes due 2014 on Sept. 30 at a redemption price of 102. The notes will be redeemed on a pro rata basis.

According to a press release, the company completed open-market repurchases of about $400 million of series A debt in August, including roughly $300 million of series A second-lien notes due 2014 and $100 million of series A second-lien notes due 2017. Following the August repurchase and the planned redemption, about $464 million of the series A notes due 2014 and $3.1 billion of the series A notes due 2017 will remain outstanding.

Including these redemptions, CIT will have eliminated about $14.5 billion of first-lien and second-lien debt since early 2010, including $7.5 billion of first-lien debt, $4.9 billion of series A notes and all of the company's $2.1 billion of series B notes.

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

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