CITsecures $4.5bn from its creditors and rebuffs Icahn
STRUGGLING commercial lender CIT Group yesterday obtained $4.5bn (£2.7bn) of additional financing from its creditors, just as it seeks to complete a debt exchange.
The new financing, which adds to a $3bn loan arranged in July, is being provided by a group of lenders including some of CIT’s bondholders.
CIT said it made the new arrangements after it was unable to determine whether billionaire investor Carl Icahn, who had offered to provide the company with a $4.5bn term loan on Tuesday, had arranged sufficient funding.
The funds represent an expansion of its existing senior secured credit facility and will be secured by much the same assets as the original $3bn loan, plus any additional collateral generated by refinancing existing secured credit facilities.