As part of its ongoing strategy to further strengthen its financial position and diversify its funding sources, CIT Group Inc. announced today that it has completed a US$1bn securitization facility backed by home equity loans. The facility will support the planned securitization of approximately US$1.8bn of home equity loans over the next few months.
This additional facility is part of the company's previously announced plans to establish new securitization funding facilities that will provide CIT with access to approximately $3 billion in additional securitization financing. Proceeds from the transaction, arranged by Credit Suisse First Boston and Citigroup, will be used to repay a portion of the company's term debt at its maturity. CIT's latest transaction follows its recently announced $1.2 billion accounts receivable conduit facility.
