CIT bonds gain as details of financing rescue awaited

NEW YORK (Reuters) - The price of struggling U.S. lender CIT's debt surged higher on Monday after a person close to the matter said the company would receive $3 billion of emergency financing from bondholders that could keep it out of bankruptcy.

CIT's floating rate notes due in August rose to 88 cents on the dollar on Monday afternoon, from 70.5 cents on the dollar late on Friday, according to MarketAxess.

Analysts said part of the rescue financing would be used to pay off short-term debt.

(Reporting by Dena Aubin and John Parry; Editing by Dan Grebler)