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CIT Group

(CIT) - Get CIT Group Inc. Report

investors received a bittersweet boost on Monday, with shares soaring after the lender announced a sweetened deal for bondholders.

CIT stock jumped more than 16% to $1.01 on the news. Still, its shares have fallen mightily from over $4.25 as recently as April, as the corporate lender barely averted bankruptcy.

CIT said on Monday that it sweetened its deal to repurchase $1 billion worth of floating rate senior notes due Aug. 17. Those bond holders will now receive $875 for each $1,000 worth of debt they hold, 6% higher than the $825 per $1,000 initially offered but far below face value.

CIT has already received enough offers to go ahead with the debt restructuring. Almost 65% of notes were offered for tender, vs. a minimum requirement of 58%. Chairman and CEO Jeffrey Peek said the company is now in a position to move forward.

"We are pleased to announce a constructive resolution to the tender offer as we continue to make progress in the development and execution of a broad restructuring plan that positions CIT for the long-term," Peek said in a statement.

Federal regulators turned a cold shoulder to CIT when the company came to them out of desperation to access capital and debt guarantees, as larger banks like

Bank of America

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,

JPMorgan Chase

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Citigroup

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Wells Fargo

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Goldman Sachs

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and others have done.

While other non-bank lenders like

General Electric

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have accessed the FDIC's guarantee program, CIT was left to hammer out a refinancing plan with bondholders on the eve of its impending collapse.

-- Written by Lauren Tara LaCapra in New York

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