By Angela McDaniels
Tacoma, Wash., Dec. 16 - CIT Group Inc. disclosed the terms of its new $21.04 billion of series A second-priority secured notes and CIT Group Funding Co. of Delaware LLC's new $2.15 billion of series B second-priority secured notes in an 8-K filing with the Securities and Exchange Commission on Wednesday.
The notes were issued upon the company's emergence from bankruptcy on Dec. 10 in order to satisfy some claims in its plan of reorganization.
The coupon is 7% for the series A notes and 10¼% for the series B notes.
The maturity date is May 1, 2013 for $2.10 billion of the series A notes; May 1, 2014 for $3.16 billion; May 1, 2015 for another $3.16 billion; May 1, 2016 for $5.26 billion; and May 1, 2017 for $7.36 billion.
The maturity date is May 1, 2013 for $214.92 million of the series B notes; May 1, 2014 for $322.38 million; May 1, 2015 for another $322.38 million; May 1, 2016 for $537.30 million; and May 1, 2017 for $752.22 million.
Both series of notes are callable at 103.5 in 2010, at 102 in 2011 and at par in each year after that.
The notes are putable at 101% upon a change of control.
The notes are secured by second-priority security interests in substantially all of the assets securing CIT's senior credit facility. The series B notes are also secured by Delaware Funding's pledge of five intercompany notes issued by CIT Financial Ltd., which are the primary assets of Delaware Funding.
The indentures governing the notes limit the ability of the companies to make restricted payments, incur debt, issue preferred stock, incur liens, enter into sale and leaseback transactions, create dividend restrictions and other payment restrictions that affect the company's subsidiaries, sell assets, enter into transactions with affiliates and issue guarantees of debt, in each case subject to certain qualifications.
CIT is a New York-based provider of financing to small businesses and middle market companies.
Series A notes
| Issuer: | CIT Group Inc.
|
| Issue: | Series A second-priority secured notes
|
| Amount: | $21.04 billion
|
| Maturities: | May 1, 2013 for $2.10 billion; May 1, 2014 for $3.16 billion; May 1, 2015 for $3.16 billion; May 1, 2016 for $5.26 billion; May 1, 2017 for $7.36 billion
|
| Coupon: | 7%, payable quarterly
|
| Price: | Par
|
| Call option: | At 103.5 in 2010, at 102 in 2011, at par from 2012 onward
|
| Change-of-control put: | 101%
|
| Settlement date: | Dec. 10
|
|
|
| Series B notes
|
| Issuer: | CIT Group Funding Co. of Delaware LLC
|
| Issue: | Series B second-priority secured notes
|
| Amount: | $2.15 billion
|
| Maturities: | May 1, 2013 for $214.92 million; May 1, 2014 for $322.38 million; May 1, 2015 for $322.38 million; May 1, 2016 for $537.30 million; May 1, 2017 for $752.22 million
|
| Coupon: | 10¼%, payable quarterly
|
| Price: | Par
|
| Call option: | At 103.5 in 2010, at 102 in 2011, at par from 2012 onward
|
| Change-of-control put: | 101%
|
| Settlement date: | Dec. 10
|
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