CIT Closes on Asset-Based Credit Facility of up to $145 Million

Rhea-AI Summary

CIT Group Inc. (NYSE: CIT) announced a commitment of $25 million in financing and served as the joint lead arranger for an asset-based credit facility of up to $145 million for a commercial finance company catering to government contractors. The facility features a $80 million revolving credit line with an accordion option for an additional $65 million. This financing solution aims to enhance working capital for both small businesses and investment-grade contractors involved in U.S. government projects.

Positive

• Secured a $25 million financing commitment.
• Acted as joint lead arranger for a $145 million asset-based credit facility.
• Facility includes an $80 million revolving credit line and an optional $65 million.
• Supports working capital for small and large contractors in U.S. government projects.

Negative

• None.

NEW YORK, Feb. 17, 2021 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that its Asset-Based Lending business committed to $25 million in financing while serving as joint lead arranger on an asset-based credit facility of up to $145 million on behalf of a commercial finance company serving government contractors.

The client provides flexibility to U.S. federal government contractors via receivable financing, unbilled financing, purchase order financing and a range of other solutions. It supports both small businesses and large investment-grade prime contractors on U.S. government projects. The transaction includes a revolving credit facility of $80 million with an accordion feature for up to $65 million more.

"Asset-based financing solutions are the right answer for many businesses seeking the funding needed to achieve their business objectives," said Chris Esposito, managing director and group head for CIT's Asset-Based Lending business. "At CIT, we are well-known for our long experience and expertise in developing asset-based lending structures that support clients."

CIT's Asset-Based Lending business, part of the company's Commercial Finance division, meets clients' working capital needs by offering innovative structures that reduce funding costs and lower operational risks while improving earnings by leveraging accounts receivable, inventory or fixed assets as collateral.

About CIT
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.

MEDIA RELATIONS: 
John M. Moran
212-461-5507
john.moran@cit.com

 

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SOURCE CIT Group Inc.

FAQ

What financing did CIT Group announce on February 17, 2021?

CIT Group announced a $25 million financing commitment and served as the joint lead arranger for an asset-based credit facility of up to $145 million.

How does the $145 million credit facility benefit CIT's clients?

The credit facility provides essential working capital solutions for both small and large businesses engaged in U.S. government contracting.

What components are included in the asset-based credit facility from CIT?

The facility includes a revolving credit line of $80 million and an accordion feature for an additional $65 million.

What is the purpose of CIT's Asset-Based Lending business?

CIT's Asset-Based Lending business aims to offer innovative financing structures to meet working capital needs and reduce funding costs.