Rule 424(b)(3)
Registration Statement No. 333-84859
Cusip #12560QBX6
PRICING SUPPLEMENT NO. 17
Dated October 31, 2000 to
Prospectus, dated September 23, 1999 and
Prospectus Supplement, dated November 2, 1999.
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. $900,000,000.
Proceeds to Corporation: 100.00% or $900,000,000
Underwriting Discount: 0.0000%.
Issue Price: Variable Price Reoffer.
Original Issue Date: November 3, 2000.
Maturity Date: November 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: +08 basis points (0.08%).
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 November 3, 2000.
MERRILL LYNCH J.P. MORGAN & CO.
CHASE SECURITIES INC.
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Form: Global Note.
Interest Reset Date: Quarterly on February 2, 2001, May 2, 2001 and August 2,
2001, commencing February 2, 2001, provided that if any Interest Reset
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 February 2, 2001, May 2, 2001, August 2,
2001 and November 2, 2001, commencing February 2, 2001, 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 (i) the fifth Business Day after each Interest
Determination Date, or (ii) the Business Day immediately preceding the
applicable Interest Payment Date.
Maximum Interest Rate: Maximum rate permitted by New York law.
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
Bridge Telerate, Inc. service (or such other page as may replace page 3750
on that service for the purpose of displaying London interbank offered
rates).
"Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions are
generally authorized or required by law or regulation to close in The City
of New York.
"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 Bank of New York, under
Indenture dated as of September 24, 1998 between the Trustee and the
Corporation.
UNDERWRITING
Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities Inc.
and Chase Securities Inc. (the "Underwriters") are acting as principals in this
transaction.
Subject to the terms and conditions set forth in a Term Sheet and Agreement
dated as of October 31, 2000 (the "Terms Agreement"), between the Corporation
and the Underwriters, incorporating the terms of a Selling Agency Agreement
dated November 2, 1999, among the Corporation and Lehman Brothers Inc., Chase
Securities Inc., Credit Suisse First Boston Corporation, J.P. Morgan Securities
Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co.
Incorporated, Salomon Smith Barney Inc., and UBS Warburg LLC (formerly known as
Warburg Dillon Read 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
Merrill Lynch, Pierce, Fenner & Smith Incorporated $425,000,000
J.P. Morgan Securities Inc. $380,000,000
Chase Securities Inc. $ 95,000,000
Total $900,000,000
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
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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.
