CIT Group Wants to Make Post Bankruptcy Deal

Since their emergence from Chapter 11 bankruptcy in December 2009 CIT Group now wants to sell its first bond deal.

The formerly popular U.S. consumer lender is expected to offer second-priority secured notes at a rate of B3/B+. This amount will then be used to retire a portion of the $19 billion by 7 percent due 2013 notes.  CIT Group is hoping to target the group of high grade investors that already know about the credit and prefer a short term bullet structure that more closely resembles investment-grade rated issuance.

As it came out of bankruptcy protection CIT Group was able to reduce its debts by $7 billion, in part by selling off  $5 billion worth of assets while funding an additional $4.5 billion in new business.  Market analysts are projecting that the company will continue to reduce costs and increase new business volume in 2011.

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