Small business lender CIT Group Inc. said today it has bought back $1 billion in debt from bondholders in another effort to avoid filing for bankruptcy protection.

The company said it completed the sale for its $1 billion of floating rate senior secured notes that were set to expire today. CIT said 59.81% of the outstanding notes were "validly tendered and not withdrawn," representing an amount exceeding an initial projection of 65%.

"The completion of this tender offer is another important milestone as the company continues to make progress on the development and execution of a comprehensive restructuring plan," CIT said in a statement.

The credit union industry and others are watching CIT's movement because should the lender file for bankruptcy protection, many of its small business clients may seek out other sources for lines of credit and loans.

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