Rule 424(b)(3)
Registration Statement No.333-63793
Cusip # 12560PBB6
PRICING SUPPLEMENT NO. 12,
Dated January 14, 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
Specified Currency: U.S. Dollars.
Original Issue Date: January 20, 1999.
Maturity Date: February 14, 2000.
Interest Rate Basis: Prime Rate.
Spread: -275 basis points.
Initial Interest Rate: The Prime Rate determined one Business Day prior to
the Original Issue Date minus 275 basis points.
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 January 20, 1999.
CHASE SECURITIES INC.
SALOMON SMITH BARNEY
MORGAN STANLEY DEAN WITTER
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Form: Global Note.
Interest Reset Date: Each Business Day to but excluding the Maturity Date.
Rate Cut-Off Date: Two Business Days prior to each Interest Payment Date.
The interest rate for each day following the Rate Cut-Off Date to but
excluding the Interest Payment Date will be the rate prevailing on the
Rate Cut-Off 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 Payment Dates: Quarterly on May 14, August 14, November 14 and
February 14, commencing May 14, 1999, provided that if any Interest
Payment Date (other than the Maturity Date) would otherwise fall on a
day that is not a Business Day, then the Interest Payment Date will be
the first following day that is a Business Day. If the Maturity Date
would otherwise fall on a day that is not a Business Day, then
principal and interest on the Note will be paid on the next succeeding
Business Day, and no interest on such payment will accrue for the
period from and after the Maturity Date.
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.
Calculation Date: The earlier of (i) the fifth Business Day after each
Interest Determination Date or (ii) the Business Day immediately
preceding the applicable Interest Payment Date.
Interest Determination Date: One Business Day prior to each Interest Reset
Date.
Minimum Interest Rate: 0.0%.
Calculation Agent: The CIT Group, Inc. (the "Corporation")
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.
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UNDERWRITING
Chase Securities Inc., Salomon Smith Barney Inc. and Morgan Stanley & Co.
Incorporated (the "Underwriters") are acting as principals in this
transaction.
Subject to the terms and conditions set forth in a Term Sheet and Agreement
dated January 14, 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
Salomon Smith Barney Inc. $50,000,000
Morgan Stanley & Co. Incorporated $50,000,000
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 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.
