(Source: 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 October29, 2009 to November5, 2009. The Early Tender Date for
these notes is October 29, 2009,
Increased the interest rate payable on the SeriesB 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 Class12 and Class13 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.
