CIT Reduces High Cost Debt (CIT)

CIT Group Inc. CIT today announced that it will redeem all of its outstanding 10.25% Series B second lien Notes maturing in 2013 and 2014. The Company has provided a redemption notice to the trustee and intends to complete the redemption on October 21, 2010. The aggregate principal amount of the 10.25% Series B Notes to be redeemed is approximately $537 million. As provided under the terms of the Series B Notes, the redemption price will be 103.5% of the aggregate principal amount redeemed. After this redemption, approximately $1.6 billion of Series B Notes maturing in 2015, 2016 and 2017 will remain outstanding. Earlier this year, the Company repaid $4.5 billion, or 60%, of its first lien debt and successfully refinanced the balance at a lower cost and with more flexible terms.