CIT Survives!!! Ratings to go Up!!!!
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CIT ANNOUNCES $3 BILLION LONG-TERM COMMITTED
FINANCING FACILITY WITH GOLDMAN SACHS
NEW YORK CIT Group Inc . (NYSE: CIT), a leading global commercial finance company, today announced that it has agreed to a $3 billion long-term committed financing facility provided by Goldman Sachs (NYSE: GS).
Under the terms of the facility, which has a 15 year average life, Goldman Sachs will provide CIT with committed access to $3 billion of securities-based financing. This facility provides CIT with funding flexibility since it is available to finance both existing assets and new originations denominated in a variety of currencies across the Company's commercial finance businesses.
We are very pleased to announce this strategic financing facility with Goldman Sachs, said Jeffrey M. Peek, Chairman and CEO of CIT. We view this transaction as another important milestone in achieving our desired financing profile. I look forward to leveraging CIT's leading position in the middle market with the liquidity provided by this facility and potentially through additional initiatives with Goldman Sachs.
Michael Esposito, co-head of Global Financial Institutions at Goldman Sachs, said, We have been pleased to have the opportunity to structure and execute this committed facility with CIT, and believe that it will provide financial flexibility that will support the company's asset origination activities.
This transaction further reflects the significant progress CIT has made to strengthen its balance sheet and improve and diversify its liquidity and funding, as it positions itself for long-term success and profitability. Since April 1, 2008, the Company has successfully executed on several additional key balance sheet strengthening initiatives, including: raising $1.6 billion in new capital, while retiring approximately $5 billion in debt; completing financings of approximately $1.5 billion and selling more than $2 billion of assets at approximately book value.
The Company has provided additional information on this transaction in a form 8K filed with the SEC, which can be found in the Investor Relations section of the CIT website at www.cit.com .
CIT (NYSE: CIT) is a global commercial finance company that provides financial products and advisory services to more than one million customers in over 50 countries across 30 industries. A leader in middle market financing, CIT has more than $80 billion in managed assets and provides financial solutions for more than half of the Fortune 1000. A member of the S&P 500 and Fortune 500, it maintains leading positions in asset-based, cash flow and Small Business Administration lending, equipment leasing, vendor financing and factoring. The CIT brand platform, Capital Redefined, articulates its value proposition of providing its customers with the relationship, intellectual and financial capital to yield infinite possibilities. Founded in 1908, CIT is celebrating its Centennial throughout 2008. www.cit.com