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CIT Completes Debt Tender Offer
CIT has averted bankruptcy by succeeding to get just above the requisite minimum of acceptances for its tender offer. The Offer expired at 12:00 midnight, New York City time, at
the end of August 14, 2009. CIT is paying $875 for every $1,000 tendered as part of the offer. From the press release:
As of the expiration date, 59.81% of the total Notes outstanding were
validly tendered and not withdrawn, an amount in excess of the minimum
condition. In accordance with the terms and conditions of the Offer, CIT
will accept tendered Notes for payment on August 17, 2009, the
settlement date, at a purchase price of $875 per $1,000 principal amount
of Notes. CIT will pay amounts due on Notes that have matured but were
neither tendered in, nor subject to the Offer in accordance with the
terms of those Notes.
Keep in mind the absolute minimum acceptance rate was 58%. One can only imagine the last minute negotiations.
Now that CIT is a well-capitalized, self-sustaining company once again it can proceed to going back to what it does best, which is lend third liens to 8x leveraged small businesses in the hopes of collecting juicy 20% downside IRRs.
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Has CIT released earnings yet? Methinks they are a tad behind on that.
And...musica: http://www.youtube.com/watch?v=C0i3eq4hlLw
So how much time does this "buy" CIT?
The underlying financial system is a joke and it's all about trying to keep above water until the miracle solution appears out of thin air...
I presume Treasury will come out with a statement today emphasizing how CIT is now "super duper well capitalized".....
And this is about as good as things are going to get.
this is GREAT NEWS !
And should propel the markets to new highs.
Kicking the can even further, TALF was extended ! AGAIN GReat NEWS,
SPX could trade to 1200 on this news, allowing all donors the opportunity to divest from equities at prices they may have missed last year...
then the real shoots can begin.
cit needs to fail. period.
His message was being spread and gaining even more support...therefore he needed to be censored. Until we have guys like Black back as regulators nothing will change. We just
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions