The CIT Group Receives Consents to Amend Indentures.LIVINGSTON, N.J.--(BUSINESS WIRE)--Dec. 7, 1999-- The CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group, Inc. (NYSE NYSE See: New York Stock Exchange :CIT) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CGN CGN Compagnie Générale de Navigation (sur le Lac Léman; French, cruise companie on Lake Geneva, Switzerland) CGN Cancer Genetics Network CGN Guided Missile Cruiser (Nuclear Propulsion) CGN Cyber Gaming Network .U) announced today that it has received the consent from more than 66 2/3% in aggregate principal amount of each of (i) the holders of its $200,000,000 in principal amount of 5.875% Senior Debt Securities due 2008, (ii) the holders of its $100,000,000 in principal amount of 9.25% Senior Subordinated Debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". Securities due 2001 and (iii) the holders of its $100,000,000 in principal amount of 8.375% Senior Subordinated Debt Securities due 2001 (collectively, the "Debt Securities") to amend the indentures under which each series of Debt Securities was issued. The amendments to the indentures will conform the negative pledge clause Negative Pledge Clause A negative covenant in an indenture stating that the corporation will not pledge any of its assets if doing so gives the lenders less security. Also be referred to as a "covenant of equal coverage". to the negative pledge clause in CIT's most recent indenture. These amendments will provide CIT and its subsidiaries greater flexibility in structuring financial transactions arising out of CIT's operating businesses, including securitizations. CIT will pay a cash consent payment of (i) $3.00, with respect to the Senior Debt Securities and (ii) $1.50, with respect to the Senior Subordinated Debt Securities, in each case, per $1,000 in principal amount of the Debt Securities to all holders of record who consented to the proposed amendments on or prior to 5 p.m. on December 6, 1999. CIT anticipates that the amendments will become effective and the consent payments will be made by December 10, 1999. CIT is a leading diversified finance company offering commercial financing secured by various types of collateral. Historically, CIT has operated almost exclusively in the United States and has marketed its products and services to smaller, middle-market and larger businesses and to individuals through a nationwide distribution network. CIT has been in business since 1908 and is recognized as a leader in many of the markets it serves. On November 15, 1999, CIT acquired Newcourt Credit Group Inc. Newcourt is one of the world's largest independent, non-bank financial services companies. Newcourt originates, sells, co-invests in and manages asset-based financings. Newcourt originates the financing of a broad range of equipment and capital assets by way of secured loans, conditional sales contracts Conditional sales contracts Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract. and financial leases. |
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