Profile: CIT Group Inc (CIT.N)
17 Apr 2014
CIT Group Inc. is a bank holding company (BHC), incorporated on March 12, 2001, together with its owned subsidiaries (CIT), provides primarily commercial financing and leasing products and other services to small and middle market businesses across a range of industries. CIT operates principally in North America, with locations in Europe, Latin America and Asia. CIT operates in five segments: Corporate Finance, Transportation Finance, Trade Finance, Vendor Finance and Consumer. CIT’s products include asset-based loans, secured lines of credit, enterprise value and cash flow loans, leases: operating, finance and leveraged, factoring services, vendor financing, import and export financing, small business loans, acquisition and expansion financing, letters of credit / trade acceptances and debtor-in-possession / turnaround financing. Its services include financial risk management, asset management and servicing, debt restructuring, credit protection, account receivables collection, debt underwriting and syndication, mergers and acquisition advisory services and insurance services. Consumer segment includes government-guaranteed student loans, which are in run-off. In March 2012, the Company purchased aircraft loan portfolio consisting of seven aviation loan facilities to several the United States airlines. In February 2014, CIT Group Inc completed the acquisition of Nacco SAS (Nacco), independent full service railcar lessors in Europe.
CIT provides financing and leasing products to its clients and customers in over 30 industries, including transportation, particularly aerospace and rail, manufacturing and retail, and in over 20 countries. CIT’s primary bank subsidiary is CIT Bank, which is a state-chartered bank located in Salt Lake City, Utah.
Corporate Finance provides a range of financing and advisory services to small and medium size companies in the United States and Canada and has a specialized lending unit focused on financial sponsors in Europe. Corporate Finance is focused on core lending products, including asset-based and cash flow lending, fee-based advisory products for middle-market customers, equipment leasing and financing, and commercial real estate financing. The Corporate Finance product suite primarily consists of senior loans, including revolving lines of credit secured by accounts receivables and inventories, term loans based on operating cash flow and enterprise valuation, and government guaranteed loans, such as SBA loans.
Commercial and industrial industries include wholesale trade (both durable and non-durable goods), business services, miscellaneous retail, chemicals and allied products, food and kindred products and numerous other industries. Communications, media and entertainment industries include broadcast, cable, entertainment, gaming, sports franchise, telephony, wireless and tower and other related industries. Healthcare industries include skilled nursing facilities, home, health and hospice companies, acute care hospitals, dialysis companies and outpatient services among others. Energy industries include conventional and renewable power generation, coal mining, oil and gas production and financing is provided to other related energy service providers and manufacturers. SBL originates and services SBA and loans for commercial real estate financing, construction, business acquisition and business succession financing.
Transportation Finance is a provider of aircraft and railcar leasing and financing solutions to operators and suppliers in the global aviation and North American rail car industries. the Company also provide lending and other financial products and services to companies in the transportation sector including those in the business aircraft, maritime and aerospace and defense industries. Transportation Finance operates through five specialized business units: Commercial Air, Rail, Business Air, Transportation Lending, and Maritime Finance, with Commercial Air and Rail accounting for the majority of the segment’s assets, revenues and earnings.
Transportation Lending provides loan and lease financing solutions to the aerospace, defense, marine and rail markets, directly or through financial sponsors and intermediaries. The Company serves approximately 500 customers, including all of the United States and Canadian Class I railroads (railroads with annual revenues of at least $250 million) and other non-rail companies, such as shippers and power and energy companies. Its operating lease fleet consists of approximately 101,000 rail cars, including covered hopper cars used to ship grain and agricultural products, plastic pellets and cement, gondola cars for coal, steel coil and mill service, open hopper cars for coal and aggregates, center beam flat cars for lumber, boxcars for paper and auto parts, tank cars, and approximately 400 locomotives.
Trade Finance offers a full range of domestic and international customized credit protection, lending and outsourcing services that include working capital and term loans, factoring, receivable management products, bulk purchases of accounts receivable, import and export financing and letter of credit programs to clients. A client (typically a manufacturer or importer of goods) is the counterparty to any factoring agreement, financing agreement, or receivables purchasing agreement that has been entered into with Trade Finance. Trade Finance services businesses that operate in several industries, including apparel, textile, furniture, home furnishings and consumer electronics. Trade Finance also can arrange for letters of credit, collateralized by accounts receivable and other assets, to be opened for the benefit of its clients’ suppliers. Trade Finance provides financing to its clients through the factoring of accounts receivable owed to its clients by their customers, which include retailers.
Vendor Finance is a developing customized business solutions for small businesses and middle market companies, providing equipment financing and value-added services. Working with manufacturers, distributors and product resellers across multiple industries, the Company develops financing programs and financial solutions tailored to the commercial end user customer’s needs that can enable increased sales by its vendor partners. The Company provides customer-centric programs ranging from structured to referral programs. CIT offers its partners financing to end user customers for purchase or lease of products, enhanced sales tools such as asset management services, loan processing and real-time credit adjudication, and tailored customer service.
CIT Group Inc
1 CIT Drive
LIVINGSTON NJ 07039