October 6, 2016 / 10:11 PM / a year ago

BRIEF-CIT says to sell CIT Commercial Air to Avolon Holdings

Oct 6 (Reuters) - CIT Group Inc :

* CIT announces definitive agreement to sell CIT Commercial Air to Avolon Holdings; received non-objection to amended capital plan

* $10.0 billion purchase price represents 6.7% premium to net assets

* Intends to return up to $3.3 billion of common equity to shareholders and undertake certain related liability management actions

* Avolon has deposited $500 million into an escrow account with a U.S. bank which is payable to CIT at closing as part of purchase price

* Selling CIT commercial air business, including operations, forward order commitments, certain assets of $11.1 billion, liabilities of $1.7 billion

* Amended capital plan authorizes cit to return additional $0.325 billion of equity contingent upon issuance of a similar amount of preferred stock

* Amended capital plan authorizes cit to pay common dividends totaling $64 million per year after transaction is completed

* J.P. Morgan Securities LLC served as exclusive financial advisor to CIT Group

* Bank of America Merrill Lynch provided capital markets structuring advice

* Amended capital plan authorizes CIT to return $2.975 billion of common equity to shareholders from net proceeds of sale

* Wachtell, Lipton, Rosen & Katz served as legal counsel to cit group

* Transaction expected to close by end of Q1 of 2017 Source text for Eikon: Further company coverage:

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