CIT Serves as Lead Arranger on Senior Secured Credit for von Drehle Corporation

Rhea-AI Summary

CIT Group Inc. (NYSE: CIT) announced its Asset-Based Lending division acted as lead arranger for a senior secured credit facility for von Drehle Corporation, a manufacturer of paper products. The funds will refinance existing debt and support general corporate purposes.

CEO Randy Bergman highlighted the increased demand for sanitation products due to the global pandemic. CIT aims to lower funding costs and operational risks while enhancing client earnings through innovative lending structures.

Positive

• CIT's expertise in asset-based lending supports client business strategies.
• The financing arrangement strengthens CIT's relationship with a leading manufacturer in a growing market.

Negative

• None.

NEW YORK, Aug. 17, 2020 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that its Asset-Based Lending business, working in conjunction with its Sponsor Finance group, served as lead arranger on senior secured credit facility for von Drehle Corporation, a leading maker of high quality paper towel, tissue and dispensing products.

von Drehle, headquartered in Hickory, North Carolina, used the proceeds to refinance debt and for general corporate purposes.

"The global pandemic has increased public understanding about the importance of cleaning and sanitation, and von Drehle has the right products to meet the needs of industrial, commercial and institutional customers and suppliers," said Randy Bergman, von Drehle president and CEO. "We appreciated CIT's agility and expertise in arranging this financing as we continue to focus on supporting our customers."

"We worked closely with von Drehle to understand their needs and were pleased to leverage our asset-based lending expertise to provide them with the financing to advance their business strategy at this important time," said Chris Esposito, managing director and group head for Asset-Based Lending.

"von Drehle is a leader in providing quality paper products to the away-from-home market," said Jeff Kilrea, managing director and group head for CIT's Sponsor Finance business. "We were pleased to help arrange financing and establish a relationship with this family-owned business as it extends its long track record of success."

CIT's Asset-Based Lending business helps meet clients' working capital needs by offering innovative structures that can reduce funding costs and lower operational risks while improving earnings by leveraging accounts receivable, inventory or fixed assets as collateral.

CIT's Sponsor Finance group provides cash flow and asset based senior debt solutions for private-equity backed transactions in the middle market throughout the United States. Private equity sponsors across numerous industries turn to CIT's Sponsor Finance group for the capital they need to acquire and grow their businesses.

Both Asset-Based Lending and Sponsor Finance are part of CIT's Commercial Finance division, which provides asset-based lending, debt solutions and numerous other financial services for middle-market clients across a wide range of industry sectors.

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 was the purpose of CIT Group's recent credit facility for von Drehle Corporation?

The credit facility was used to refinance debt and for general corporate purposes.

When was the CIT Group announcement made regarding the credit facility for von Drehle?

The announcement was made on August 17, 2020.

How does CIT Group's Asset-Based Lending division benefit businesses?

It helps businesses reduce funding costs, lower operational risks, and improve earnings through innovative lending structures.

What industry does von Drehle Corporation operate in?

von Drehle Corporation is a leading manufacturer of paper towel, tissue, and dispensing products.

What is CIT Group's stock symbol?

CIT Group’s stock symbol is CIT.