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CIT Bank Closes $750 Million Equipment Lease Securitization

CIT Bank, the U.S. bank subsidiary of CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of financing and advisory services to small businesses and middle market companies, today announced that it closed a $750 million equipment lease securitization.

CIT sold five classes of fixed rate notes in a private offering backed by a pool of equipment leases from CIT Vendor Finance. The weighted average fixed coupon is 1.02%, which represents a weighted average credit spread of 0.58% over benchmark rates for the five classes of notes. The securitization had a net advance rate of 92.6%. Details of the transaction are as follows:

         
Class

A-1

A-2

A-3

B

C

Size $275,000,000 $210,000,000 $209,384,000 $27,808,000 $27,808,000
Ratings (S&P/Moody's) A-1+(sf)/P-1(sf) AAA(sf)/Aaa(sf) AAA(sf)/Aaa(sf) AA(sf)/Aa1(sf) A(sf)/A1(sf)

Weighted Average Lifeto Call

0.45 1.25 2.27 2.93 2.93

Credit Spread toBenchmark

-0.03% 0.35% 0.65% 1.05% 1.40%
Fixed Rate Coupon 0.30% 0.65% 1.13% 1.69% 2.04%
 

Proceeds from the transaction will be used for general corporate purposes. CIT has now completed 19 term equipment securitizations since 2000, 12 of which were backed exclusively by its U.S. vendor finance collateral. This transaction represents the first equipment securitization issued by CIT Bank.

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