CIT aims to keep shaving $3.9 billion debt, refinancing and extending

By Susanna Moon

Chicago, June 13 – CIT Group Inc. will continue “to look for opportunities to refinance, extend maturities and reduce unsecured debt,” according to a company presentation at the Morgan Stanley Financials Conference on Wednesday.

The company said it has redeemed or repurchased $6.9 billion of senior debt in 2017 with an average coupon of 5.15%.

Also this year, the company has extended about $900 million of debt due in the first quarter of 2019 until 2021 and 2025, using proceeds of about $1 billion of senior debt issued so far in 2018.

As a result, there is about $3.9 billion of senior debt remaining with an average rate of 4.83%.

Meanwhile, deposit costs have “performed well” even after three rate increases over the past year. By shifting to lower-cost non-maturity deposits, the company is aiming to lower the deposit costs relative to the index.

CIT Group is a New York-based bank holding company.

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