Rule 424(b)(3)
Registration Statement No. 333-27465
Cusip # 12560 PAY 7
PRICING SUPPLEMENT NO. 5,
Dated November 4, 1998, to
Prospectus, dated September 24, 1998 and
Prospectus Supplement, dated September 25, 1998.
THE CIT GROUP, INC.
MEDIUM-TERM FIXED RATE NOTES
DUE NINE MONTHS OR MORE FROM DATE OF ISSUE
(X) Senior Note ( ) Senior Subordinated Note
Principal Amount: U.S. $55,000,000.
Proceeds to Corporation: 99.754%% or $54,864,700.
Underwriting Commission: 0.246% or $135,300.00
Issue Price: 100% or $55,000,000.
Original Issue Date: November 9, 1998.
Maturity Date: January 15, 2003.
Interest Rate Per Annum: 5.920%.
Interest Payment Dates: Bi-annually each January 15 and July 15, commencing
January 15, 1999, provided that if any such day is not a Business Day, the
payment will be made on the next succeeding Business Day as if it were
made on the date such payment was due, and no interest will accrue on the
amount payable for the period from and after such Interest Payment Date or
the Maturity Date, as the case may be.
Interest payments will include the amount of interest accrued from and
including the most recent Interest Payment Date to which interest has been
paid (or from and including the Original Issue Date) to but excluding the
applicable Interest Payment Date.
The Notes are offered by the Underwriter, as specified herein, subject to
receipt and acceptance by it and subject to its right to reject any order in
whole or in part. It is expected that the Notes will be ready for delivery in
book-entry form on or about November 9, 1998.
MORGAN STANLEY DEAN WITTER
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Form: Global Note.
Specified Currency: U.S. Dollars.
Trustee, Registrar, Authenticating and Paying Agent:
The First National Bank of Chicago, under the Indenture dated as
of September 24, 1998 between the Trustee and The CIT Group, Inc.
(the "Corporation").
UNDERWRITING
Morgan Stanley & Co. Incorporated (the "Underwriter") is acting as
principal in this transaction.
Subject to the terms and conditions set forth in a Term Sheet and
Agreement dated November 4, 1998 (the "Terms Agreement"), between the
Corporation and the Underwriter, incorporating the terms of a Selling
Agency Agreement dated May 15, 1996, between the Corporation and Lehman
Brothers, Lehman Brothers Inc., Credit Suisse First Boston Corporation,
Goldman, Sachs & Co., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Morgan Stanley & Co. Incorporated, Salomon Smith
Barney Inc. (formerly known as Salomon Brothers Inc), and Warburg Dillon
Read LLC (formerly known as UBS Securities LLC), the Corporation has
agreed to sell to the Underwriter, and the Underwriter has agreed to
purchase, $55,000,000 aggregate principal amount of the Notes.
Under the terms and conditions of the Terms Agreement, the Underwriter is
committed to take and pay for all of the Notes, if any are taken.
The Underwriter has advised the Corporation that it proposes to initially
offer the Notes to the public at the Issue Price set forth above. After
the initial public offering, the public offering price and other terms may
be changed from time to time. In connection with the sale of the Notes,
the Underwriter may be deemed to have received compensation from the
Corporation in the form of underwriting discounts, and the Underwriter may
also receive commissions from the purchasers of the Notes for whom it may
act as agent. The Underwriter and any dealers that participate with the
Underwriter in the distribution of the Notes may be deemed to be
underwriters, and any discounts or commissions received by them and any
profit on the resale of the Notes by them may be deemed to be underwriting
discounts or commissions.
The Notes are a new issue of securities with no established trading
market. The Corporation currently has no intention to list the Notes on
any securities exchange. The Corporation has been advised by the
Underwriter that it intends to make a market in the Notes but is not
obligated to do so and may discontinue any market making at any time
without notice. No assurance can be given as to the liquidity of the
trading market for the Notes.
The Corporation has agreed to indemnify the Underwriter against certain
liabilities, including liabilities under the Securities Act of 1933, as
amended.
