CIT Group Inc.
) extended $61.8 million senior secured credit facility to a
portfolio company of Alterna Capital Partners. The latter will
utilize the loan to finance the acquisition of three 50,000 DWT
ECO-design Medium Range (MR) IMO II/III product/chemical tankers
from STX Offshore & Shipbuilding Co. Ltd.
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The transaction was financed by CIT's U.S. commercial bank
subsidiary, CIT Bank while CIT Maritime Finance - a segment of
CIT specializing in blue water vessel financing - planned and
The terms and conditions of the transaction are yet to be
disclosed but it is known that the deal is to close within the
next five years. Further, Alterna has entered into a long-term
charter with Stena Weco, a leading shipper of petroleum products,
edible oils and easy chemicals for the proposed acquisition of
the three tankers.
The latest transaction is CIT's third deal with Alterna. Earlier,
the former had partially financed the construction expenses and
delivered cost of American Phoenix, a U.S.-flagged Jones
Act-qualified chemical tanker. The tanker is owned by Mid Ocean
Tanker Company (MOTC), a joint venture between Mid Ocean Marine
and Alterna Capital Partners.
Further, the latest deal will help CIT expand its loan portfolio
in the maritime sector. Notably, as of Jun 30, 2013, CIT's cash
and short-term investment securities were $6.9 billion,
comprising $5.7 billion of cash and $1.2 billion of short-term
Currently, CIT carries a Zacks Rank #3 (Hold). Some better
performing stocks in the same sector include
FleetCor Technologies, Inc.
Financial Engines, Inc.
). While FleetCor has a Zacks Rank #1 (Strong Buy), both
Financial Engines and Moody's carry a Zacks Rank #2 (Buy).