CIT Prepping TALF Deal

CIT Group, the consumer finance company transitioning into a bank holding company, is prepping a Term Asset-Backed Securities Loan Facility, or TALF, deal.

The $750 million-to-$1 billion deal would come to market at the end of the second quarter or beginning of the third quarter, company officials said during CIT’s first quarter earnings call today. The deal would be composed of equipment financing assets.

CIT officials said they expect pricing of Libor plus 150 to 200 basis points — not tight at all. The CIT executives said they were doing the deal to enhance the company’s overall access to capital.

TALF, which in part provides downside protection to investors, has not found the widespread acceptance, mainly because it is not any cheaper for issuers than current market pricing.