Commercial finance company CIT Group Inc. (CIT) said Thursday that it has signed a commitment letter with Wells Fargo Bank, N.A. for a new 5 year, $500 million secured facility that can be used to fund middle market term and revolving loans.
CIT expects to start borrowing under the new facility during the fourth quarter of 2008.
CIT Bank also continues to directly originate new commercial loans. Since July 1, CIT Bank deposit issuances have exceeded $500 million, which, combined with excess cash maintained in the bank earlier in the year, have supported more than $1.4 billion of commercial loan fundings.
Additionally, the company said that fundings through its secured aircraft facility are approaching $400 million, with an additional $400 million expected before year-end.
Jeffrey Peek, CIT Chairman and CEO, said, "We continue to execute on our strategic funding plan and explore additional options to further strengthen our liquidity position. These efforts will allow us to continue to meet the financing needs of our middle market customers and further enhance the value of the CIT franchise."
CIT shares are currently trading at $6.22, down 93 cents or 13.01%.
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