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CIT Halted... Again
As the market has again forgotten what a TICK < 1,000 is, CIT wants to fast forward straight to its price being $10+/share like in the good ole' days.
Here's the skinny: apparently as CIT realized there was no way in hell they would get the exchange offer done in time, they are i) increasing the purchase price from $825 to $875 for tendered notes and ii) reducing the minimum tender condition to 58% of notes which is more than the 64.97% that has already been tendered.
“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.As a result of the amendment, 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 in cash
per $1,000 principal amount of Notes, as total consideration in the
Offer. Previously, the purchase price, which included an early delivery
payment, was $825 per $1,000 principal amount of Notes.CIT announced that the amendment to the Offer also reduces the minimum
tender condition to 58% of the Notes, an amount approximately equal to
the number of Notes which pursuant to the Credit Facility the lenders
are committed to tender and not withdraw. As of 5:00 p.m., New York City
time, on Friday, July 31, 2009, CIT had received tenders for 64.97% of
the Notes.
What limboesque void the 35% holdouts fall into is unclear. But when not even two thirds of your holders are sufficient to consummate a tender offer, you know everything must be damn good with the underlying fundamentals.
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Did it finally declare bankruptcy?
SAN FRANCISCO (MarketWatch) -- CIT Group Inc. /quotes/comstock/13*!cit/quotes/nls/cit (CIT 0.98, +0.11, +12.82%) said Monday it amended a tender offer for $1 billion in floating rate senior notes due Aug. 17. The bank holding company said it raised the purchase price on the notes to $875 for each $1,000 in principal, from $825 for tenders before Aug. 14. CIT also said it reduced the minimum tender condition to 58% of notes, equal to current commitments. As of July 31, CIT had received tenders for nearly 65% of the notes. Shares of CIT, which were halted earlier, rose 7.8% to 94 cents in recent trading.
seems to be trading right now. although, very erratically
Debt markets and vultures meet the equities markets and the same vultures working away....
Makes me wonder if the decision has been made to pile on the insurance claims to water down the pending Lehman disaster and boost PIMCO's bargaining position with regard to their ITM swaps while they await the break out in the UST space as a temp check on their counter parties (GS) ability to pay. Especially now that they have seats at the table.
Bet they just couldn't get the bond holders to take the hit to shore up enough capital. Shocking. Not.
looks like this market is headed much higher before a real collapse maybe next summer. Nothing makes any sense, but I will attest that hoes in Chicago are selling like crazy now. Neighbor just go out bid and sold her place for 10% more than she paid 2 years ago.. Does not make any sense but the government is orchestrating something and being short is getting harder to handle.
The govt is orchestrating nothing but printing money like crazy.
I just don't understand how some of you think "nothing makes sense" - everything in the financial world is priced in USD from a US investor standpoint. As they dollar gets debased, prices go up, even bubbles like the housing market burst more slowly.
Any bad situation - banks, automakers, CRE - will be papered over with cheap money.
lol@neighborhood hoes.
It does look like it's heading higher, but in late February it looked like it was heading into the ground nose first. I bet we turn real quick and it's gonna be real painful for the idiots who believed we would never go up again in February and now believe we will never go down again. You're the same people, and you know it.
+1
short the stock market
http://www.marketwatch.com/story/cit-amends-tender-offer-on-1-billion-in-notes-2009-08-03?tool=1&dist=bigcharts&symb=CIT&sid=1184474
We are now officially at a 50% retrace of the Feb lows on the SPY. Anybody bet on 61.8%? I say tomorrow is the day. If we close above today and don't confirm, or if we break down this afternoon, the rally is over.
The most funniest thing would be if market went nowhere, just say here, it would kill the bears and the bulls.
I hope we turn soon, my shorts are killing me and being forced to buy calls everyday is painful, even though profitable.
CIT now getting Riverboated higher.....
I went "balls to the wall" long CIT at $1.25, $0.78 and $0.52....increasing my position on the way down. Avg buy-in stands at $0.62 on 60,000 shares. As of now I am sitting pretty. I also took a flyer on some of there Nov '09 bonds and 2022 bonds. Ka-chingo!!!
please try to get over yourself..you'll win your own
personal Olympic high-jump gold medal and someone else might care.
the fact that only 10% of the non insiders tendered is surprising. i can't figure out how that is positive. the company's threat of bk did not work apparently.
CIT is a back-the-truck-up buy based solely on the fact that it closely resembles the word clit.