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CIT Closes $500 Million Financing With Wells
CIT expects to borrow from the facility in the fourth quarter.
November 4, 2008
CIT Group said on Tuesday it closed on its previously announced $500 million financing facility with Wells Fargo.
Under the terms of the five-year revolving facility, Wells Fargo has committed to provide CIT with access to $500 million of secured financing. Borrowings under the facility are subject to eligibility criteria, including approval of all loans used as collateral by Wells Fargo.
Shares of CIT were sharply higyher at midday Tuesday, changing hands at $5.89, up $1.49, or 33%, at $6.01. The Wall Street Journal reported Tuesday that the Treasury Department may use some of the $700 billion it has earmarked for its financial-services rescue package to buy stakes in financial companies besides banks and insurers, a development that could be favorable for CIT.
The facility is available to finance both new and existing middle market term and revolving loans, said CIT, adding that it expects that it will begin to borrow under the new facility this quarter.
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