CIT GROUP Verdopplung ,Vervierfachung möglich

DOW JONES NEWSWIRES

CIT Group Inc.'s (CIT) tender offer for its $1 billion floating-rate notes due Monday was successful, giving the lender a little more breathing room on its debt, though the 59.8% of notes that were tendered was below the level the company announced earlier this month.

The struggling commercial lender, hurt by the liquidity crisis as its customers drew down credit lines in fear that they might disappear, has been working in recent weeks to avoid bankruptcy.

Earlier this month, the company amended the terms of the debt-buyback offer, lowering the minimum threshold required to 58% from 90%. It had said at the time 65% of notes were tendered. The company had said last month it might need to file for bankruptcy protection if it didn't get enough notes tendered to the offer.

The company will pay $875 per $1,000 of principal notes tendered.

Last week, CIT also announced a shareholder-rights plan, which also came as it entered into a written agreement with the Federal Reserve Bank of New York, its principal regulator, that limits how it can pay dividends and restructure debt. The New York bank holding company also has to submit to the Fed within the next two weeks a written plan for maintaining sufficient capital.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@ dowjones.com