NEW YORK-CIT Group has entered a $3 billion credit facility provided by a group of the company’s major bondholders.
Jeffrey M. Peek, CIT’s chairman and chief executive officer, said the new credit facility and the cash offer for the notes will allow the company, its lenders and bondholders to focus on a restructuring plan “that will better position the company for the long term.”
CIT said $2 billion of the loan facility is available as of now, while the remaining $1 billion is expected to be available within 10 days.
The troubled financial firm said it intends to begin a comprehensive restructuring of its liabilities to provide additional liquidity and further strengthen its capital position. This involves an offer to buy back with cash its outstanding floating-rate senior notes due on Aug. 17 for $825 for each $1,000 principal amount.