CIT to trim high-cost debt by another $600 million

CIT Group Inc, a US-based provider of financing to small businesses and middle market companies, today announced plans to redeem an additional $600 million of its 7 per cent Series C senior unsecured notes maturing in 2016.

Following this redemption, approximately $2.4 billion principal amount of the bonds and about $1.6 billion of principal amount maturing in 2017 will remain outstanding, CIT said in a release.

CIT has so far refinanced or eliminated more than $26.5 billion of high-cost debt since January 2010.

''Following this redemption we will have eliminated or refinanced more than $26.5 billion of high cost debt over the past two-and-a-half years.''

''We continue to advance our liability transformation,'' said John A Thain, chairman and chief executive. ''Following this redemption we will have eliminated or refinanced more than $26.5 billion of high cost debt over the past two-and-a-half years,'' he added

The company has provided a redemption notice for the 7 per cent notes to the trustee and intends to complete the redemption on 20 August 2012. As provided under the terms of issue, the company will redeem the outstanding principal balance at par on a pro-rata basis among all of the 2016 notes.

Founded in 1908, CIT now is a bank holding company with more than $34 billion in financing and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries.