Ryder bond issue provides liquidity for operations, 2020 maturities

By Devika Patel

Knoxville, Tenn., May 21 – Ryder System, Inc. has sufficient liquidity after a $400 million bond sale to fund its operations and pay the debt maturities coming due in 2020, despite sluggish demand in its rental business.

“Our liquidity position remains strong, with approximately $1.8 billion in available committed liquidity, including approximately $800 million in available cash as of earlier this month following the execution of our $400 million bond offering,” executive vice president and chief financial officer Scott Parker said at the Wolfe Research Virtual Global Transportation & Industrials Conference on Thursday.

“We believe we are well-positioned to support operations, fund the remaining $300 million of debt maturities we have for 2020 and pay our dividend,” Parker said.

On May 5, Ryder priced an upsized $400 million of 3.35% medium-term notes due Sept. 1, 2025 (Baa1/BBB+/A-) at 99.931 and a spread of 300 basis points over Treasuries.

Initial talk was in the 330 bps over Treasuries area with price guidance tightened to the 305 bps area, plus or minus 5 bps.

The offering was upsized from $300 million.

BNP Paribas Securities Corp., BofA Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

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