NEW YORK (AP) -- CIT Group Inc. will repay $600 million in high-cost debt as it continues to restructure its balance sheet, the company said Friday.
The big commercial lender, based in New York, said that it is repaying Series C Senior Unsecured Notes that carry a 7 percent interest rate. After the repayment, CIT still will owe $2.4 billion on the notes. It also owes $1.6 billion on 7 percent notes due in 2017.
The payment means CIT has eliminated or refinanced more than $26.5 billion over the past two-and-a-half years, Chairman and CEO John Thain said in a statement.
The transaction will increase CIT's third-quarter interest expense by up to $30 million, the company said. It said there might additional costs related to the payment.
New York-based CIT filed for bankruptcy protection on Nov. 1, 2009. It restructured its debt quickly and emerged from bankruptcy protection that December, but was still weighed down by billions in high-cost debt. Since then, the company has been working to pay down or refinance that debt.
It intends to complete the latest repayment on Aug. 20.
CIT provides financing and leasing for small and midsized companies. It helps retailers pay for inventory and offers import and export financing, among other services.
Shares closed closed down 19 cents at $34.80.
