CIT GROUP INC PREFERRED SERIES A (CIT-PA) is the 6.350% NON-CUMULATIVE PREFERRED STOCK, SERIES A has a Par value of $25.00. This was $350 million issued, or 14 million shares. PROSPECTUS
CIT GROUP PREFERRED SERIES C (CIT-PC) are down 80% at $2.41 and have traded 1.2 million shares. This is the 8.75% non-cumulative perpetual preferred shares that have a Par value of $50.00 and were a $575 million issue. PROSPECTUS
CIT GROUP INC EQUITY UNITS (CIT-PZ) are UP 48% at $9.00 on 2.5 million ‘units.’ This was a $1.38 billion issue and are Equity Units with a $25 Par value and and came originally with a 1/40, or 2.5%, undivided beneficial ownership interest in a $1,000 principal amount senior note due November 15, 2015 issued by CIT. PROSPECTUS
In the capital structure, the preferred shares are above the common, but the senior notes are above the preferred because they are higher-ranked creditors.
Then there is always the other corporate debt that is outstanding. We have seen prices of those trade in the 60’s, but we are now told that those trade down in the 50’s as of late morning….
As a reminder, buying higher up in the capital structure does not assure by any means that there is residual value. It depends upon the bankruptcy process and who is in charge of it. But in just about very single bankruptcy case out there, the common shareholders get to have a funeral.
JON C. OGG
JULY 16, 2009
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