Despite the recent global credit turmoil that has caused four consecutive quarterly losses at Cit Group Inc., the commercial finance company is bullish on the future of the National Hockey League.
To that end, it has completed a $100 million loan agreement with Canadian billionaire Daryl Katz so that he may purchase the Edmonton Oilers.
The loan from New York-based Cit will allow Mr. Katz, owner of the Edmonton, Alberta-based pharmaceutical company Katz Group Canada Ltd., to complete his $200 million deal to buy the Oilers, which was first announced over the winter.
Cit’s participation in the deal comes a month after the commercial finance company received $3 billion in financing from New York-based Goldman Sachs Group Inc. to help it fund existing assets and new originations (InvestmentNews June 10).
The Oilers once ruled the NHL, winning five Stanley Cups from 1984-1990, but struggled in the 1990s when a weakened Canadian dollar, combined with higher player salaries, left the franchise near the bottom of the league.
They have since revived, and in 2006 made it to the Stanley Cup finals.
Cit had $80 billion in managed assets on March 31.
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