As the market has again forgotten what a TICK < 1,000 is, CIT wants to fast forward straight to its price being $10+/share like in the good ole' days.
Here's the skinny: apparently as CIT realized there was no way in hell they would get the exchange offer done in time, they are i) increasing the purchase price from $825 to $875 for tendered notes and ii) reducing the minimum tender condition to 58% of notes which is more than the 64.97% that has already been tendered.
“We are pleased to announce a constructive resolution to the tender offer as we continue to make progress in the development and execution of a broad restructuring plan that positions CIT for the long-term,” said Jeffrey M. Peek, Chairman and CEO.
As a result of the amendment, holders of all Notes tendered prior to the expiration date at midnight, New York City time, at the end of Friday, August 14, 2009, will receive the amended purchase price of $875 in cash per $1,000 principal amount of Notes, as total consideration in the Offer. Previously, the purchase price, which included an early delivery payment, was $825 per $1,000 principal amount of Notes.
CIT announced that the amendment to the Offer also reduces the minimum tender condition to 58% of the Notes, an amount approximately equal to the number of Notes which pursuant to the Credit Facility the lenders are committed to tender and not withdraw. As of 5:00 p.m., New York City time, on Friday, July 31, 2009, CIT had received tenders for 64.97% of the Notes.
What limboesque void the 35% holdouts fall into is unclear. But when not even two thirds of your holders are sufficient to consummate a tender offer, you know everything must be damn good with the underlying fundamentals.