CIT GROUP INC. (NYSE:CIT) Files An 8-K Entry into a Material Definitive Agreement
Item1.01 Entry into a Material Definitive Agreement
On February 27, 2017 (the Effective Date), CIT Group Inc.
(the Company) and certain of its subsidiaries entered into
Amendment No. 1 to the Second Amended and Restated Revolving
Credit and Guaranty Agreement, dated as of February 27, 2017 (the
Amendment), by and among the Company, as borrower, certain
subsidiaries of the Company, as guarantors, the lenders party
thereto from time to time, and Bank of America, N.A., as
administrative agent and letter of credit issuer.
The Amendment modifies the Companys Second Amended and Restated
Revolving Credit Agreement (the Second Amended and Restated
Revolving Credit Agreement), entered into on February 17,
2016, among the Company, certain subsidiaries of the Company, as
guarantors, the lenders party thereto and Bank of America, N.A.,
as administrative agent and letter of credit issuer. Changes
effected by the Amendment include the extension of the final
maturity date of the lenders commitments to January 25, 2019,
reduction of the lenders total commitments from $1.5 billion to
$1.4 billion on the Effective Date, and further reduction of the
lenders total commitments to $750 million, effective upon
consummation of the sale of the Companys commercial aircraft
leasing business to Avolon Holdings Limited (the Air
Disposition). The Air Disposition is targeted to close by the
end of the first quarter of 2017, to the Purchase and Sale
Agreement, dated October 6, 2016, among C.I.T. Leasing
Corporation, Park Aerospace Holdings Limited, Bohai Capital
Holding Co. Ltd., the Company and Avolon Holdings Limited, filed
as Exhibit No. 2.1 to the Current Report on Form 8-K dated
October 12, 2016.
In addition, the Amendment modifies the covenant requiring
satisfaction of a $6 billion minimum consolidated net worth of
the Company and its subsidiaries by replacing it, effective upon
consummation of the Air Disposition, with a covenant requiring
satisfaction of a minimum Tier 1 capital ratio of nine percent
(9%).
On the Effective Date, the total commitment amount under the
Second Amended and Restated Revolving Credit Agreement was $1.400
billion, consisting of an approximately $1.073 billion revolving
loan tranche and an approximately $327 million revolving loan
tranche that can also be utilized for issuance of letters of
credit. As of the Effective Date, no amounts were drawn under the
Second Amended and Restated Revolving Credit Agreement other than
approximately $100 million that was utilized for letters of
credit. Any amounts drawn under the Second Amended and Restated
Revolving Credit Agreement, as amended by the Amendment, in the
future will be used for general corporate purposes.
The foregoing description of the Amendment and the transactions
contemplated thereby is not complete and is subject to and
qualified in its entirety by reference to the full text of the
Amendment, a copy of which is attached hereto as Exhibit 10.1 and
the terms of which are incorporated herein by reference.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| 10.1 |
Amendment No. 1 to Second Amended and Restated Revolving Credit and Guaranty Agreement, dated as of February 27, 2017, among CIT Group Inc., certain subsidiaries of CIT Group Inc., as Guarantors, the Lenders party thereto from time to time and Bank of America, N.A., as Administrative Agent and L/C Issuer. |
About CIT GROUP INC. (NYSE:CIT)
CIT Group Inc. (CIT) is a bank holding company. The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America, and equipment financing and leasing solutions to the transportation industry around the world. The Company’s segments include North America Banking (NAB), including Commercial Real Estate, Commercial Banking and Consumer Banking divisions; Transportation & International Finance (TIF), including Aerospace, Rail, Maritime Finance and International Finance divisions, and Legacy Consumer Mortgages (LCM), which includes single-family residential mortgage (SFR) loans and reverse mortgage loans. CIT products and services include account receivables collection; equipment leases; acquisition and expansion financing; factoring services; financial risk management; asset management and servicing; asset-based loans; insurance services; credit protection; debt restructuring, and deposits. CIT GROUP INC. (NYSE:CIT) Recent Trading Information
CIT GROUP INC. (NYSE:CIT) closed its last trading session up +0.21 at 42.99 with 1,664,404 shares trading hands.
