CIT Group closed a new $2 billion revolving credit facility with a bank syndicate.
The revolver is priced between Libor plus 200 basis points and Libor plus 275 basis points, based on CIT’s long-term senior unsecured rating. It has no Libor floor.
The firm used the proceeds, along with available cash, to repay the remaining $2.5 billion of its $3 billion first-lien term loan.
Bank of America Merrill Lynch, Barclays Capital and JPMorgan Securities were joint lead arrangers and bookrunners on the revolver. Bank of America served as administrative agent.
Earlier this month CIT appointed Nelson J. Chai as president. In July, the New York-based financing provider prepaid $500 million of its then $3 billion first-lien term loan. In March, the company issued $2 billion in an upsized, two-part junk bond deal.
Since the beginning of 2010, CIT has refinanced or eliminated more than $13 billion of first-lien and second-lien debt. It emerged from bankruptcy in 2009.
CIT is a bank holding company that provides financing to small and middle market companies. It has more than $35 billion in finance and leasing assets.