CIT nears a deal for a $3 billion loan to lower funding costs

08/5/2010 | Nasdaq.com

CIT Group is close to finalizing a $3 billion loan that will refinance an expensive facility, a holdover from its bankruptcy. Even when the deal is finalized, CIT will still have problems accessing cheap debt, analysts said. "This really helps CIT lower funding costs relative to its existing funding base," said Sameer Gokhale of Keefe, Bruyette & Woods. "But it doesn't take away from the fact [CIT] needs to find a more stable and cheaper long-term funding base."

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