With the new loan, CIT was given an offer they "couldn't refuse" by PIMCO, Centerbridge, and others. GE had a better offer over the weekend, but by the time GE's funds would be available, it would be too late.
The loan terms are as follows:
This will move practically all of the the unencumbered assets into the security package for the new loan. This loan is already trading above par in the secondary market.
What's amazing is that CIT, knowing darn well they have debt maturities coming up didn't try to do something earlier, waiting until they were desperate. Apparently they were convinced that the FDIC will let them effectively use their expanding deposit base (at the bank they've set up) to pay down some of their debt. Another lesson in reliance on a government intervention - it's all about which way the wind blows.