CIT Completes $49 Million Bareboat Charter Financing with Grieg Star

NEW YORK--()--CIT Group Inc. (NYSE:CIT) cit.com, a global leader in transportation finance, today announced that CIT Maritime Finance, with the assistance of RS Platou Finans, completed a $49 million financing through a bareboat charter arrangement with Grieg Shipping II AS, a subsidiary of the Grieg Star Group AS (Grieg Star), the second largest open hatch general cargo carrier owner in the world. The subject vessel was Star Lygra, a 50,700 deadweight tonnage open hatch general cargo carrier. Financing from CIT was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.

“We’re pleased to acquire this state-of-the-art vessel and bareboat charter it to Grieg Star, one of the largest and most reputable owners of open hatch general cargo carriers in the world,” said Svein Engh, Managing Director and Group Head of CIT Maritime Finance. “This transaction represents our first financing through a bareboat charter and reflects our ability to structure a tailored financing solution that affords Grieg Star purchase options and increased capital flexibility.”

Star Lygra, delivered December 2013, was built at Hyundai Mipo Dockyards in South Korea and is part of a series of 10 L-class vessels. The L-class vessel represents the 12th generation in the Grieg Star Open Hatch concept. The open hatch design is a well-proven concept and is tailor-made for transportation of forest products, steel, containers and other oversized cargoes. The vessel is equipped with four cranes with power swivel for steady cargo handling. The open hatch allows for completely unobstructed cargo loading and handling. The ship is 670 feet long and 105 feet wide with nine cargo holds. Fully loaded, the ship can reach speeds of 15.5 knots, or a little more than 17 miles per hour.

Camilla Grieg, CEO of Grieg Star, said, “This customized transaction complements our existing portfolio of more than 30 owned ships and will allow us to service the increasing transportation demand around the world. We have more than 50 years of experience in the maritime sector and are pleased to complete our first transaction with Svein and his team, whose deep industry knowledge served us well.”

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About Grieg Star

Founded in 1961 and headquartered in Bergen and Oslo, Grieg Star, is one of the largest owners of open hatch general cargo carriers in the world. The Group’s trade routes cover North and South America, Europe and Asia, and one of the major trade routes is the North American pulp and paper cargo sailings to Asia and Europe. The Group owns, manages and operates 34 open hatch general cargo carriers (of which 32 are owned) with sizes between 30,000 and 50,000 dwt. The Group employed approximately 1,100 persons, of whom 850 are sailing personnel and 250 office personnel. Dating back to 1884, the Grieg family controls a number of businesses mainly related to the maritime industry. griegstar.com

About RS Platou

RS Platou is a leading international ship- and offshore broking company established in 1936. The Company serves the shipping and offshore industry worldwide by providing services within chartering, sale and purchase and contracting of ships and offshore units. Further, the Company provides investment banking services and project financing with a core focus on the shipping and offshore industries. The core services are complemented by a large variety of quality research material and market reports provided by the economic research group and the research analyst within the investment bank. The Company’s head office is in Oslo, Norway. RS Platou is also present in Singapore, Aberdeen, London, Houston, Moscow, Accra, Cape Town, Rio de Janerio, Shanghai, South Korea, Piraeus, Geneva, Dubai, Perth, Sydney, Melbourne and New York. The Group has approximately 350 employees worldwide.

About CIT Maritime Finance

CIT Maritime offers senior secured loans, sale-leasebacks and bareboat charters to owners and operators of oceangoing cargo vessels including tankers, bulkers, container ships, car carriers, as well as offshore vessels and drilling rigs. cit.com/maritime

About CIT Bank

Founded in 2000, CIT Bank (Member FDIC, Equal Housing Lender) is the U.S. commercial bank subsidiary of CIT Group Inc. (NYSE:CIT). It provides lending and leasing to the small business, middle market and transportation sectors. CIT Bank (BankOnCIT.com) offers a variety of savings options designed to help customers achieve their financial goals. As of March 31, 2014, it had over $13 billion of deposits and more than $16.5 billion of assets. cit.com/CITBank

About CIT

Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com

Contacts

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Senior Vice President of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
Vice President, Media Relations
Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
Barbara Callahan, 973-740-5058
Senior Vice President
Barbara.Callahan@cit.com

Release Summary

CIT Maritime Finance, with the assistance of RS Platou Finans, completed a $49 million financing through a bareboat charter arrangement with Grieg Shipping II AS

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Contacts

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Senior Vice President of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
Vice President, Media Relations
Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
Barbara Callahan, 973-740-5058
Senior Vice President
Barbara.Callahan@cit.com