CIT's Care Investment Cuts Size of Sale 20 Percent

CIT Group Inc. (CIT), the biggest independent commercial finance company in the U.S., cut the size of its initial share sale by 20 percent for Care Investment Trust Inc., a newly formed health-care real estate investment trust.

The company now plans to sell 15 million shares instead of 18.75 million, according to a filing with the U.S. Securities and Exchange Commission. Care Investments plans to acquire fewer assets when the sale is completed because a California hospital prepaid a loan that was part of the original portfolio, the filing said. The IPO had been scheduled to be priced yesterday.

CIT Chief Executive Officer Jeffrey Peek wants to transform his lending company into an asset manager, cutting reliance on interest income and boosting profit from more predictable fee revenue. CIT will own about 28 percent of Care Investment after the offering, today's filing shows, and a subsidiary of CIT will manage the new company's business.

``There's no history of operations. They're raising money to execute a plan which is a little harder to sell than something that has a history,'' said Ben Holmes, publisher of in Boulder, Colorado.

CIT spokesman Curtis Ritter didn't return a call seeking comment.

The offering is being managed by Credit Suisse Group and Merrill Lynch & Co. with assistance from seven other banks. The firm plans to list on the New York Stock Exchange under the symbol CRE.

To contact the reporter on this story: Elizabeth Hester in New York at

To contact the editor responsible for this story: Erik Schatzker at

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