CIT eyes change-of-control provisions to debt

(Reuters) - CIT is leaning toward putting these provisions in new bonds
that it issues on a case-by-case basis, should the market
demand them, Chief Executive Jeff Peek told Reuters in an
interview.




Companies in the finance sector have traditionally been
seen as immune from leveraged buyouts. But SLM Corp.,
the student loan company also known as Sallie Mae, agreed in
April to be acquired by two banks and two private equity
investors.


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Sallie deal may yet go ahead, but price could fall

(Reuters) - Sallie Mae said on Wednesday a group of private equity firms and banks threatened to scuttle their buyout of the company, blaming proposed legislation to cut government subsidies to student lenders.




The deal has a break-up fee of $900 million, but if the buyers could prove the legislation has a "material adverse impact" on the transaction, they would not have to pay the fee.


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US STOCKS-Indexes up with oil sector, but Sallie Mae drags

(Reuters) - NEW YORK, July 11 - U.S. stocks advanced on
Wednesday, helped by gains in energy shares as oil prices
traded near $73 a barrel.




But the three major stock indexes pared gains after
student loan firm SLM Corp. , commonly known as Sallie
Mae, said the buyers in its proposed $25 billion takeover told
it that current legislative proposals could threaten the deal.
For details, see [ID:nN11401528] Sallie Mae's shares tumbled
10.6 percent after the company's announcement.


Read more at Reuters.com Bonds News