EFTA00759448.pdf

From: Jeffrey M Matusow To: Jeffrey Epstein <[email protected]> Cc: Thomas McGraw .y Subject: RE: CIT's Bonds Gain After S&P Assigns Lender Junk Debt Ranking Date: Fri, 30 Apr 2010 13:05:14 +0000 Jeffrey M. Matusow JPMorgan Private Bank 140 West 57th Street, 33rd Floor, New York, NY 10019 Work Email: IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. From: Jeffrey Epstein [mailto:[email protected]] Sent: Friday, April 30, 2010 9:03 AM To: Jeffrey M Matusow Subject: Re: CIT's Bonds Gain After S&P Assigns Lender Junk Debt Ranking email me mcgraws number please On Thu, Apr 29, 2010 at 5:38 PM, Jeffrey M Matusow > wrote: As we expected, CIT was assigned a rating by S+P today - B+/B. The bonds rallied 1.5 points on the news. Jeff CIT's Bonds Gain After S&P Assigns Lender Junk Debt Ranking 2010-04-29 20:41:37.969 GMT By Pierre Paulden and David Henry April 29 (Bloomberg) -- CIT Group Inc. bonds rose after Standard & Poor's assigned the commercial lender a high-yield, high-risk rating four months after it emerged from bankruptcy. EFTA00759448  S&P assigned its B+/B ranking citing "the considerable transitional challenges CIT faces in transforming its funding platform," New York-based analysts Rian Pressman and Jeffrey Zaun wrote today in a report. S&P rated the company's unsecured debt B, five steps below investment grade. CIT securities have surged since the New York-based company emerged from bankruptcy in December, indicating bond investors believe the lender run by John Thain will be able to refinance its debt at lower costs. The lender reported a first-quarter profit of $97 million, or 49 cents a share, beating the average projection of four analysts surveyed by Bloomberg for a loss of 25 cents a share. CIT's $7.36 billion of 7 percent notes due 2017 rose 1.5 cents on the dollar to 94.75 cents as of 4:34 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bonds traded as high as 95.75 cents earlier in the afternoon. The bonds have climbed from 85 cents on Dec. 9, before CIT exited Chapter 11 protection, rewarding creditors from Loomis Sayles & Co. to Pacific Investment Management Co. CIT filed for bankruptcy in November after posting nine quarters of losses totaling more than $5 billion. The company emerged from court protection after cutting $10.4 billion of debt and delaying maturities by at least three years, with a plan to operate more businesses through banking units so they can tap financing from lower-cost deposits backed by the Federal Deposit Insurance Corp. This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosures/email. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. EFTA00759449