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20 marzo 2008. Altri dettagli sull'operazione
CIT Group on liquidity action conf call summary (9.63 -2.01) -Update-
CIT says their drawing of $7.3 bln has nothing to do with their commercial franchise business... says their operations remain solid. Co says this was not their preferred path, but they decided was best for the co long-term. Co says they are maximizing their operating flexibility in their uncertain capital market environment. Also the co will evaluate the sale of assets and various business lines as the co realized they need to run a smaller co. Co says they will now focus on their commercial business. Their tangible ratio was above their target at year end of 8.5%. On the bank draw, the co has the option to draw from of 40 banks of so, and ultimately drew of four separate facilities drawing over $7 bln. $2.1 bln is due Oct 2009, $2.1 bln due April 2009, $2.1 bln due April 2010, and $1 bln due in Dec 2011. Their cost for their $7.3 bln will be LIBOR plus 50, and the cost can't exceed LIBOR plus 100. The proceeds will be used to pay off commercial paper and other obligations. With their forecasted asset levels, these proceeds should satisfy their needs through the balance of the year. The co currently is working on shrinking the balance sheet, and will look at accelerating their asset sales, which will be in the multi-billion dollar range. The co says a strong debt rating is key, and single A rating is their goal over time. Repayment plans include a strategic funding partner to provide ongoing funding sources. On the timing on the funding partners, the co said they have gotten close with one potential partner in preliminary discussions, but the environment backed them away from that. The asset roll of the payments they have and certain asset sales, including equipment finance, and including the draw, the co sees they will meet the maturities for all of 2008 through that combination. Co says they do not have the opportunity to go the fed window. CB outstanding has come down recently, and is $2 bln or less... says they have had further CP maturities today and yesterday
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