CIT Amended Tender Terms (CIT)

CIT Group Inc. (NYSE: CIT) has seen its shares halted for news pending.  That news is out.  The troubled financial lender to small businesses and middle market companies has announced that, with the consent of the lenders’ steering committee for its recently announced $3 billion secured credit facility, it has amended its pending tender offer for its $1 billion of Floating Rate Senior Notes due August 17, 2009.

The company said this is a constructive resolution to the tender offer as it continues to make progress in the development and execution of a broad restructuring plan.  Upon the amendment holders of all Notes tendered prior to the expiration date (at midnight EST at the end of Friday, August 14, 2009) will receive the amended purchase price of $875 in cash per $1,000 principal amount of notes.

The prior purchase price, including an early delivery payment, was $825 per $1,000 principal amount of notes.

The amendment also reduces the minimum tender condition to 58% of the notes.  As of Friday, CIT said that it already had received tenders for 64.97% of the notes.  The withdrawal deadline has been extended until midnight EST at the end of Wednesday, August 5, 2009.

The other terms of the offer will remain unchanged. Morgan Stanley and BofA Merrill Lynch are the dealer managers for the offer, and D.F. King is the depositary and information agent.

Jon C. Ogg
August 3, 2009