CIT Group (NYSE:CIT) today announced that it has amended the terms of its pending tender offer for its $1 billion of Floating Rate Senior Notes due August 17, 2009.
According to a statement from the lender, holders of all notes tendered prior to the expiration date at midnight, New York City time, at the end of Friday, August 14, 2009, will receive the amended purchase price of $875 (87.5 cents on the dollar) in cash per $1,000 principal amount of notes . Previously, the purchase price was $825 (82.5 cents on the dollar) per $1,000 principal amount of notes.
The amendment also reduces the minimum tender condition to 58% of the notes, an amount approximately equal to the number of notes which pursuant to the recently announced $3 billion secured credit facility the lenders are committed to tender and not withdraw. As of July 31, CIT had received tenders for nearly 65% of the notes.
“We are pleased to announce a constructive resolution to the tender offer as we continue to make progress in the development and execution of a broad restructuring plan that positions CIT for the long-term,” said Jeffrey M. Peek, Chairman and CEO.
CIT also said that the withdrawal deadline for the offer has been extended until August 5, 2009, and that all other terms of the offer remain unchanged.
Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) are the Dealer Managers for the offer.
CIT shares rose nearly 15% to $1.00 after the stock resumed trading following the company’s announcement.