CIT Group Inc. announced the final results of its modified Dutch auction tender offer for up to $2.75 billion of its common shares.
CIT accepted for payment about 57,291,666 million common shares at a purchase price of $48 per share, for a total cost of around $2.75 billion, excluding fees and expenses. The common shares purchased represent about 28.3% of the company's common shares issued and outstanding as of May 23, 2017.
The common shares were accepted on a pro-rata basis, except for tenders of "odd lots," which were accepted in full. The proration factor for the tender offer is around 88.6%.
J.P. Morgan Securities LLC served as the lead dealer manager for the offering. Barclays Capital Inc. and Citigroup Global Markets Inc. were the co-dealer managers. Georgeson LLC acted as the information agent for the offering, and Evercore served as adviser to the CIT board on the transaction.
CIT also announced the pricing of a public offering of 325,000 fixed- to floating-rate noncumulative perpetual preferred shares, series A, for $1,000 per share.
The company expects the offering to close June 7 and plans to use the net proceeds for general corporate purposes, including returning capital to shareholders.
Morgan Stanley & Co. LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering.