Rule 424(b)(3)
Registration Statement No.333-63793
Cusip # 12560PBF7
PRICING SUPPLEMENT NO. 17,
Dated March 25, 1999 to Prospectus, dated September 24, 1998 and Prospectus
Supplement, dated September 25, 1998.
THE CIT GROUP, INC.
MEDIUM-TERM FLOATING RATE NOTES
DUE NINE MONTHS OR MORE FROM DATE OF ISSUE
(X) Senior Note ( ) Senior Subordinated Note
Principal Amount: U.S. $200,000,000.
Proceeds to Corporation: 100% or $200,000,000.
Underwriting Discount: 0%.
Issue Price: Variable Price Reoffer, Initially at Par.
Original Issue Date: March 30, 1999.
Maturity Date: April 2, 2001, provided that if such day is not a Business Day,
the payment of principal and interest may be made on the next succeeding
Business Day, and no interest on such payment will accrue for the period
from and after the Maturity Date.
Interest Rate Basis: LIBOR.
Index Maturity: Three months
Spread: +5.5 basis points ( .055%).
Interest Rate Calculation: LIBOR determined on the Interest Determination
Date plus the Spread.
Initial Interest Rate: LIBOR determined two London Business Days prior to the
Original Issue Date plus the Spread.
Specified Currency: U.S. Dollars
The Notes are offered by the Underwriters, as specified herein, subject to
receipt and acceptance by them and subject to their 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 March 30, 1999.
CHASE SECURITIES INC.
CREDIT SUISSE FIRST BOSTON
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Form: Global Note.
Interest Reset Date: Quarterly on Quarterly on January 2, April 2, July 2 and
October 2, commencing July 2, 1999, provided that if any Interest Reset
Date (other than the Maturity Date) would otherwise fall on a day that is
not a Business Day (as defined below), then the Interest Reset Date will
be the first following day that is a Business Day, except that if such
Business Day is in the next succeeding calendar month, such Interest Reset
Date will be the immediately preceding Business Day.
Interest Payment Dates: Quarterly on January 2, April 2, July 2 and October 2,
commencing July 2, 1999, provided that if any such day is not a Business
Day, the Interest Payment Date will be the next succeeding Business Day,
except that if such Business Day is in the next succeeding calendar month,
such Interest Payment Date will be the immediately preceding Business Day,
and no interest on such payment will accrue for the period from and after
the Maturity Date.
Accrual of Interest: Accrued interest will be computed by adding the Interest
Factors calculated for each day from the Original Issue Date or from the
last date to which interest has been paid or duly provided for up to but
not including the day for which accrued interest is being calculated. The
"Interest Factor" for any Note for each such day will be computed by
multiplying the face amount of the Note by the interest rate applicable to
such day and dividing the product thereof by 360.
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.
Interest Determination Date: Two London Business Days prior to each Interest
Reset Date.
Calculation Date: The earlier of (a) the Business Day immediately preceding the
applicable Interest Payment Date or the date on which the Note will mature,
or (b) the tenth calendar day after an Interest Determination Date, provided
such day is a Business Day, or, if such day is not a Business Day, the next
succeeding Business Day.
Maximum Interest Rate: Not applicable.
Minimum Interest Rate: 0.0%.
Other Provisions:
"LIBOR" means the rate for deposits in U.S. dollars having the Index
Maturity specified above which appears on the Telerate Page 3750 (defined
below) as of 11:00 a.m., London time, on the applicable Interest
Determination Date.
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"Telerate Page 3750" means the display page designated as page 3750 on the
Dow Jones Telerate Service (or such other page as may replace page 3750 on
that service for the purpose of displaying London interbank offered
rates).
"London Business Day" means any day on which deposits in U.S. dollars are
transacted in the London interbank market.
Trustee, Registrar, Authenticating and Paying Agent:
The First National Bank of Chicago, under Indenture dated as of September
24, 1998 between the Trustee and the Corporation.
UNDERWRITING
Chase Securities Inc. and Credit Suisse First Boston Corporation (the
"Underwriters") are acting as principals in this transaction.
Subject to the terms and conditions set forth in a Term Sheet and Agreement
dated March 25, 1999 (the "Terms Agreement"), between the Corporation and the
Underwriters, 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 Underwriters, and the Underwriters have
each severally agreed to purchase the principal amount of the Notes set forth
below opposite their names.
Underwriter Principal Amount
Chase Securities Inc. $100,000,000
Credit Suisse First Boston Corporation $100,000,000
Total $200,000,000
Under the terms and conditions of the Terms Agreement, the Underwriters are
committed to take and pay for all of the Notes, if any are taken.
The Underwriters have advised the Corporation that they propose to offer the
Notes for sale from time to time in one or more transactions (which may include
block transactions), in negotiated transactions or otherwise, or a combination
of such methods of sale, at market prices prevailing at the time of sale, at
prices related to such prevailing market prices or at negotiated prices. The
Underwriters may effect such transactions by selling the Notes to or through
dealers, and such dealers may receive compensation in the form of underwriting
discounts, concessions or commissions from the Underwriters and/or the
purchasers of the Notes for whom they may act as agent. In connection with the
sale of the Notes, the Underwriters may be deemed to have received compensation
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from the Corporation in the form of underwriting discounts, and the Underwriters
may also receive commissions from the purchasers of the Notes for whom they may
act as agent. The Underwriters and any dealers that participate with the
Underwriters 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 Underwriters that
they intend to make a market in the Notes but are 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 Underwriters against certain
liabilities, including liabilities under the Securities Act of 1933, as amended.
