Ryder System's strong financial position and banking relationships enabled it to extend the maturity on its $870 million revolver to five years, said Dan Susik, senior v.p. and treasurer.
The new facility replaces an $860 million facility that comprised a $300 million, 364-day revolver and a $560 million, five-year revolver.
"Based on the strength of our financial situation as well as the improving bank market, we felt we'd be able to syndicate an all five-year facility," Susik said. FleetBoston Financial, now Bank of America, and Citibank lead the new facility. "Getting a five-year facility done with your bank is an indication you have a strong banking relationship and strong financial position," Susik noted.
Ryder can borrow off the facility at the parent level and at its primary international subsidiaries. Prior to the predecessor of this facility, Ryder had two separate facilities, one outside the U.S. and one inside. Susik said it is easier from an administrative perspective to have one facility with one set of documents and one set of covenants.
Ryder also added a letter of credit facility feature to the deal. Susik declined to disclose pricing, but said, "The deal was oversubscribed and we were pleased with what we were able to price it at." Ryder is a provider of transportation and supply chain management solutions.