NEW YORK (AP) -- Commercial lender CIT Group Inc. said Monday that it will redeem an additional $3.29 billion in high-interest debt, including $1.75 billion of its 7 percent Series C senior unsecured notes that mature in 2016 and the remaining $1.54 billion of the notes maturing in 2017.
After the redemptions, about $680 million in principal of the notes maturing in 2016 will remain outstanding, CIT said in a news release.
The move is another step for CIT toward eliminating its high-cost debt, Chairman and CEO John Thain said in a statement. He said the company has eliminated or refinanced $30 billion in high-cost debt in less than three years.
New York-based CIT filed for bankruptcy protection during the financial crisis in 2009. It restructured its debt quickly and emerged 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.
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.
CIT said Monday it plans to complete the redemption on Sept. 5. Under the terms of the Series C notes, CIT will redeem the outstanding principal balance at par. In addition, the notes maturing in 2016 will be redeemed on a pro-rata basis.
CIT shares rose 51 cents to $38.06 in midday trading. The shares have traded between $27.68 and $43.35 in the past 52 weeks.
