CIT Completes $512 Million Collateralized Loan Obligation (CLO) Transaction
First in a Series of Asset Management Initiatives Designed to Leverage CIT’s Expanded Origination Platforms; Generate Non-Spread Revenues and Increase Return on Equity
CIT Group Inc. (NYSE: CIT) a leading global provider of commercial and consumer finance solutions, today announced that it has priced and closed its collateralized loan obligation (CLO) transaction, CIT CLO I, Ltd. Proceeds from the $512 million transaction were used primarily to acquire a diversified group of CIT originated middle market loans, third-party originated middle market loans and broadly syndicated loans. The CLO closed on May 23, 2007.
This transaction represents the first in a series of asset management initiatives designed to diversify and grow non-spread revenues while capitalizing on CIT’s core strengths of asset origination, risk management and client service.
“The launch of this CLO supports our corporate strategy to build an asset management platform that will enable us to better leverage our originations capabilities and drive fee generation as we utilize our balance sheet more efficiently,” said Jeffrey M. Peek, CIT Chairman and CEO.
Walter J. Owens, President of CIT’s Corporate Finance Group, said, “The talented and experienced executive team we have in place will allow us to build upon the success of this CLO. The team’s ability to close CLO transactions will enable us to better leverage the origination capabilities of our front end while providing an ongoing source of capital through the creation of asset management and servicing fees.”
The securities issued in connection with the CLO have not been registered under the Securities Act of 1933, as amended, or any state securities laws. The securities have been offered only to “Qualified Institutional Buyers” under Rule 144A of the Securities Act of 1933 (and to “accredited investors” under limited circumstances) and to non-U.S. persons in offshore transactions under Regulation S and they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. All of the securities have been sold. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.
About CIT
CIT Group Inc. (NYSE: CIT) , a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has approximately $80 billion in managed assets and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries worldwide. CIT, a Fortune 500 company and a member of the S&P 500 Index, holds leading positions in cash flow lending, vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its global headquarters in New York City, CIT has approximately 7,500 employees in locations throughout North America, Europe, Latin America and Asia Pacific. http://www.cit.com/
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