Attached files
file | filename |
---|---|
EX-4.1 - EX-4.1 - CIT GROUP INC | y02407exv4w1.htm |
EX-99.2 - EX-99.2 - CIT GROUP INC | y02407exv99w2.htm |
8-K - FORM 8-K - CIT GROUP INC | y02407e8vk.htm |
Exhibit
99.1
FOR IMMEDIATE RELEASE
CIT AMENDS RESTRUCTURING PLAN
NEW YORK October 16, 2009 CIT Group Inc. (NYSE: CIT), a leading provider of financing to
small businesses and middle market companies, today announced that it has amended its restructuring
plan to further build bondholder support. The amendments have been approved by CITs Board of
Directors and the Steering Committee of CITs bondholders.
On October 1, 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. Successful completion of either the exchange offers or plan of reorganization will
generate significant capital and provide multi-year liquidity through the material reduction of
CITs outstanding debt.
Over the last two weeks, we have continued to work constructively with the Steering Committee
and believe that these amendments will further build bondholder support for our restructuring
plan, said Jeffrey M. Peek, Chairman and CEO. Through the completion of the exchange offers or an
expedited in-court restructuring process, we will reduce the uncertainty around our business and
further maximize the value of our franchise. Either approach is intended to ensure that CIT becomes
a well-capitalized bank holding company that will serve as a source of strength for CIT Bank as we
implement our new bank-centric funding model.
Amended Terms of the Restructuring Plan
The amended terms of the restructuring plan include, among others:
| A comprehensive cash sweep mechanism to accelerate the repayment of the new notes; | ||
| The shortening of maturities by six months for all new notes and junior credit facilities; | ||
| An increased amount of equity offered to subordinated debt holders reflecting agreements with holders of the majority of its senior subordinated debt; | ||
| The inclusion of the notes maturing after 2018 that had previously not been solicited as part of the exchange offer or plan of reorganization; | ||
| An increase in the coupon on Series B Notes, to 9% from 7%, being issued by CIT Delaware Funding; and | ||
| Provided preferred stock holders contingent value rights in the plan of reorganization, and modified the allocation of common stock in the recapitalization after the exchange offers, as part of an agreement with the United States Department of Treasury. |
The exchange offers expire at 11:59 pm, New York City time, on Thursday, October 29, 2009,
with the exception of the additional notes maturing after 2018 for which there is an early
acceptance date of October 29, 2009 and expiration date of
November 13, 2009. Tendered securities
may be validly withdrawn at any time prior to the expiration or early acceptance date.
NYSE Approval
On October 14, 2009, the New York Stock Exchange (the NYSE) accepted CITs application of
the financial viability exception to the NYSEs shareholder approval policy in connection with the
issuance of the New Preferred Stock should the Offers be consummated. The Audit Committee of the
Companys Board of Directors has approved the use of this exception.
For Additional Information
The
Company is filing an 8-K containing the amended Offering Memorandum, Disclosure Statement
and Solicitation of Acceptances of a Prepackaged Plan of Reorganization with the Securities and
Exchange Commission. Further information about the Company, its
restructuring plan, including the amended offering memorandum, will
be available at www.cit.com
The Information Agent for the Offer is D.F. King & Co. Financial Balloting Group, LLC is
serving as Exchange Agent for the Exchange Offers and Voting Agent for the Plan of Reorganization.
Retail holders of notes with questions regarding the voting and exchange process should contact the
information agent at (800) 758-5880 or +1 (212) 269-5550. Banks and brokers with questions
regarding the voting and exchange process should contact the exchange and voting agent at +1 (646)
282-1888. BofA Merrill Lynch and Citigroup Global Markets are acting as financial advisors to the
Company for purposes of this transaction.
Evercore Partners, Morgan Stanley and FTI Consulting are the Companys financial advisors and
Skadden, Arps, Slate, Meagher & Flom LLP and Sullivan & Cromwell LLP are legal counsel in
connection with the restructuring plan.
Individuals interested in receiving future updates on CIT via e-mail can register at
http://newsalerts.cit.com.
About CIT
CIT (NYSE: CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and
CIT (NYSE: CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and
headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words expect, anticipate, estimate, forecast, initiative, objective, plan, goal, project, outlook, priorities, target, intend, evaluate, pursue, commence, seek, may, would, could, should, believe, potential, continue, or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, CIT may need to seek protection under the US Bankruptcy Code, even if the tender offer is consummated, the risk that the $3 billion loan facility does not provide the liquidity that CIT is seeking due to material negative changes to CITs liquidity from draw down of loans by customers, the risk that CIT is unsuccessful in its efforts to effectuate a comprehensive restructuring of its liabilities, in which case CIT may be forced to seek bankruptcy relief. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words expect, anticipate, estimate, forecast, initiative, objective, plan, goal, project, outlook, priorities, target, intend, evaluate, pursue, commence, seek, may, would, could, should, believe, potential, continue, or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, CIT may need to seek protection under the US Bankruptcy Code, even if the tender offer is consummated, the risk that the $3 billion loan facility does not provide the liquidity that CIT is seeking due to material negative changes to CITs liquidity from draw down of loans by customers, the risk that CIT is unsuccessful in its efforts to effectuate a comprehensive restructuring of its liabilities, in which case CIT may be forced to seek bankruptcy relief. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
###
CIT MEDIA RELATIONS:
C. Curtis Ritter
Director of External Communications & Media Relations
(212) 461-7711
Curt.Ritter@cit.com
C. Curtis Ritter
Director of External Communications & Media Relations
(212) 461-7711
Curt.Ritter@cit.com
CIT INVESTOR RELATIONS:
Ken Brause
Executive Vice President
1-866-54CITIR (542-4847)
investor.relations@cit.com
Ken Brause
Executive Vice President
1-866-54CITIR (542-4847)
investor.relations@cit.com