CIT Amended Tender Terms (CIT)

By Douglas A. McIntyre Updated Apr 27, 7:05PM EDT · Published Aug 3, 12:25PM EDT

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CIT Group Inc. (NYSE: CIT) has seen its shares halted for news pending. That news is out. The troubled financial lender to small businesses and middle market companies has announced that, with the consent of the lenders’ steering committee for its recently announced $3 billion secured credit facility, it has amended its pending tender offer for its $1 billion of Floating Rate Senior Notes due August 17, 2009.

The company said this is a constructive resolution to the tender offer as it continues to make progress in the development and execution of a broad restructuring plan. Upon the amendment holders of all Notes tendered prior to the expiration date (at midnight EST at the end of Friday, August 14, 2009) will receive the amended purchase price of $875 in cash per $1,000 principal amount of notes.

The prior purchase price, including an early delivery payment, was $825 per $1,000 principal amount of notes.

The amendment also reduces the minimum tender condition to 58% of the notes. As of Friday, CIT said that it already had received tenders for 64.97% of the notes. The withdrawal deadline has been extended until midnight EST at the end of Wednesday, August 5, 2009.

The other terms of the offer will remain unchanged. Morgan Stanley and BofA Merrill Lynch are the dealer managers for the offer, and D.F. King is the depositary and information agent.

Jon C. Ogg
August 3, 2009

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.