CIT Group Inc. (NYSE: CIT) has announced that it is drawing upon its $7.3 Billion in unsecured U.S. bank credit facilities. The Company will use the proceeds to repay debt maturing in 2008, including commercial paper, and to provide financing to its core commercial franchises.
Interestingly enough, the company also notes that will continue to actively seek additional funding sources over the near-term and "it will explore and execute on the sale of non-strategic assets or business lines."
CEO Jeff Peek noted that this was a result of the protracted disruption in the capital markets as well as recent actions taken by the rating agencies. In addition it should provide it with added flexibility and the ability to finance clients. The company will hold a conference call after the close today to discuss the details.
Shares of CIT Group were already down significantly by more than 30% on financing concerns before being halted today. The good news is that the company seems able to tap that credit facility. The bad news is that investors usually treat companies that drain their credit facilities as being in a pickle.
CIT Group has made many disclosures on overall credit exposures, but it has really taken its toll. Over the last year this was a $60.00 stock. Shares were down at $7.94 before the stock was halted at 11:45 AM EST.
Jon C. Ogg
March 20, 2008
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
