CIT Group's (CIT) Financing Facility Has Been Reduced To $2.125B From $3B

CIT Group Inc. (NYSE: CIT) has reached an agreement to amend its $3 billion securities-based financing facility with Goldman Sachs (NYSE: GS). Pursuant to the amendment, the commitment amount of the GSI Facility has been reduced to $2.125 billion, effectively eliminating the currently unused portion of the facility, and CIT Group has agreed to post additional collateral to secure amounts due to Goldman Sachs under the GSI Facility.

In connection with the reduction of the commitment amount of the Goldman Sachs Facility, CIT Group made a payment of approximately $285 million representing the proportional termination fee payment to Goldman Sachs as required for any such reduction under the original terms of the GSI Facility. CFL has initially posted additional collateral in the amount of $250 million, which amount will fluctuate over time pursuant to the terms of the amendment. In consideration of these amendments to the GSI Facility, and subject to certain additional terms, GSI has agreed to forbear from exercising its right to terminate the GSI Facility to the extent that such right arises from a bankruptcy of CIT, which guarantees the obligations of CFL under the GSI Facility.