Clarifies Expiration Date of Delaware Funding Offers
NEW YORK--(Business Wire)--
CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses
and middle market companies, today announced that it has modified its amended
Offering Memorandum dated October 16, 2009 through a supplement dated October
23, 2009. The supplement reflects changes that are expected to build additional
bondholder support.
The supplement to the Amended Offering Memorandum, Disclosure Statement and
Solicitation of Acceptances of a Prepackaged Plan of Reorganization includes,
among others:
Specific Changes to the Terms of the Delaware Funding Offers and Plan of
Reorganization
* Extension of the expiration date of the offers and the solicitation of
acceptances of the Plan of Reorganization only with respect to offers made by
CIT Group Funding Company of Delaware LLC ("Delaware Funding") from October 29,
2009 to November 5, 2009. The Early Tender Date for these notes is October 29,
2009,
* Increased the interest rate payable on the Series B Notes from 9.0% per annum
to 10.25% per annum.
Updates to the Terms of CIT Group Inc. Offers and Plan of Reorganization
* All New Notes issued pursuant to the Offers or in connection with the Plan of
Reorganization will be denominated in U.S. dollars,
* The New Notes are expected to be rated by one or more nationally recognized
statistical rating organizations,
* Increased the percentage of New Common Interests distributable pro rata to
holders of Junior Subordinated Note Claims to 1.5% in the event Class 12 and
Class 13 accept the Plan of Reorganization,
* Certain Old Notes issued by CIT Group Inc. contain a survivor`s option. If an
option has been exercised, but has not yet been paid, it will be treated as
follows:
* If tendered and the Offers are consummated, they will be exchanged for the
consideration to which they are entitled under the terms of the Offers,
* If not tendered and the Offers are consummated, they will be redeemed pursuant
to the terms of the survivor`s option, or
* If the Plan of Reorganization is consummated, then they will be exchanged
pursuant to the terms of the Plan of Reorganization.
* Updated the liquidation analysis in which CIT calculates the probable
distribution to holders of CIT securities in the event of liquidation.
On October 1, 2009, as subsequently amended on October 16, 2009 and October 23,
2009, CIT commenced a series of offers to exchange certain outstanding series of
notes and concurrently began a solicitation for votes for a voluntary
prepackaged plan of reorganization. Successful completion of either the exchange
offers or plan of reorganization will generate significant capital and provide
multi-year liquidity through the material reduction of CIT`s outstanding debt.
The CIT Group Inc. exchange offers expire at 11:59 pm, New York City time, on
Thursday, October 29, 2009, with the exception of the additional notes maturing
after 2018 for which there is an early acceptance date of October 29, 2009 and
expiration date of November 13, 2009. The Delaware Funding exchange offers
expire at 11:59 p.m. New York City time on Thursday, November 5, 2009 and have
an Early Tender Date of October 29, 2009. In the CIT Group Inc. exchange offers,
tendered securities may be validly withdrawn at any time prior to the applicable
expiration date, except to the extent that the tender of securities on or prior
to the early acceptance date has been accepted. In the Delaware Funding Exchange
Offers tendered securities may be validly withdrawn at any time prior to the
early tender date.
For Additional Information
CIT filed an 8-K with the Securities and Exchange Commission regarding the
supplements to the amended Offering Memorandum. Further information about the
Company, its restructuring plan, including the supplement and the amended
offering memorandum, will be available at www.cit.com.
The Information Agent for the Offer is D.F. King & Co. Financial Balloting
Group, LLC is serving as Exchange Agent for the Exchange Offers and Voting Agent
for the Plan of Reorganization. Retail holders of notes with questions regarding
the voting and exchange process should contact the information agent at (800)
758-5880 or +1 (212) 269-5550. Banks and brokers with questions regarding the
voting and exchange process should contact the exchange and voting agent at +1
(646) 282-1888. BofA Merrill Lynch and Citigroup Global Markets are acting as
financial advisors to the Company for purposes of this transaction.
Evercore Partners, Morgan Stanley and FTI Consulting are the Company`s financial
advisors and Skadden, Arps, Slate, Meagher & Flom LLP is legal counsel in
connection with the restructuring plan. Sullivan & Cromwell is legal advisor to
CIT`s Board of Directors.
Individuals interested in receiving future updates on CIT via e-mail can
register at http://newsalerts.cit.com.
About CIT
CIT (NYSE: CIT) is a bank holding company with more than $60 billion in finance
and leasing assets that provides financial products and advisory services to
small and middle market businesses. Operating in more than 50 countries across
30 industries, CIT provides an unparalleled combination of relationship,
intellectual and financial capital to its customers worldwide. CIT maintains
leadership positions in small business and middle market lending, retail
finance, aerospace, equipment and rail leasing, and vendor finance. Founded in
1908 and headquartered in New York City, CIT is a member of the Fortune 500.
www.cit.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of
applicable federal securities laws that are based upon our current expectations
and assumptions concerning future events, which are subject to a number of risks
and uncertainties that could cause actual results to differ materially from
those anticipated. The words "expect," "anticipate," "estimate," "forecast,"
"initiative," "objective," "plan," "goal," "project," "outlook," "priorities,"
"target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would,"
"could," "should," "believe," "potential," "continue," or the negative of any of
those words or similar expressions is intended to identify forward-looking
statements. All statements contained in this press release, other than
statements of historical fact, including without limitation, statements about
our plans, strategies, prospects and expectations regarding future events and
our financial performance, are forward-looking statements that involve certain
risks and uncertainties. While these statements represent our current judgment
on what the future may hold, and we believe these judgments are reasonable,
these statements are not guarantees of any events or financial results, and our
actual results may differ materially. Important factors that could cause our
actual results to be materially different from our expectations include, among
others, CIT may need to seek protection under the US Bankruptcy Code, even if
the tender offer is consummated, the risk that the $3 billion loan facility does
not provide the liquidity that CIT is seeking due to material negative changes
to CIT`s liquidity from draw down of loans by customers, the risk that CIT is
unsuccessful in its efforts to effectuate a comprehensive restructuring of its
liabilities, in which case CIT may be forced to seek bankruptcy relief.
Accordingly, you should not place undue reliance on the forward-looking
statements contained in this press release. These forward-looking statements
speak only as of the date on which the statements were made. CIT undertakes no
obligation to update publicly or otherwise revise any forward-looking
statements, except where expressly required by law.
CIT MEDIA RELATIONS:
C. Curtis Ritter, 212-461-7711
Director of External Communications & Media Relations
Curt.Ritter@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause, 1-866-54CITIR (542-4847)
Executive Vice President
investor.relations@cit.com
Copyright Business Wire 2009
