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MIAMI - Ryder System, Inc. (NYSE: R), a leading logistics and transportation company with a market capitalization of $5.76 billion, has announced the establishment of a new $1.6 billion five-year corporate revolving credit facility, involving 11 global financial institutions. This new credit line, effective until April 22, 2030, replaces the company’s previous facility and expands its credit capacity by $200 million. According to InvestingPro data, this facility comes at a crucial time as the company’s current ratio stands at 0.75, indicating that short-term obligations exceed liquid assets.
Cristina Gallo-Aquino, Ryder’s Chief Financial Officer, highlighted the significance of the agreement, stating that it "further solidifies Ryder’s strong liquidity position for the next five years." The facility is intended for working capital and general corporate purposes for Ryder and its subsidiaries.
Dan Susik, Ryder’s Senior Vice President of Finance and Treasurer, expressed satisfaction with the outcome, acknowledging the "confidence and long-term financial support" from the company’s banking partners.
The transaction saw BofA Securities, Inc. and MUFG Bank, Ltd. serving as joint bookrunners and lead arrangers. Other financial institutions, including BNP Paribas Securities Corp., Mizuho Bank, Ltd., PNC Capital Markets LLC, RBC Capital Markets, Truist Securities, Inc., U.S. Bank National Association, and Wells Fargo Securities, LLC, also played roles as joint lead arrangers. Regions Bank and Comerica Bank participated as lenders.
Ryder System, Inc. operates a comprehensive logistics and transportation business, offering a wide range of services such as supply chain management, dedicated transportation, and fleet management solutions. The company boasts a large footprint, managing nearly 250,000 commercial vehicles, maintaining fleets at approximately 760 locations, and operating close to 300 warehouses with over 100 million square feet of space. This extensive operation generated $12.64 billion in revenue and $2.69 billion in EBITDA over the last twelve months, demonstrating the company’s significant market presence.
The information regarding Ryder’s new credit facility is based on a press release statement. Ryder System, Inc. is known for its commitment to industry-leading practices, innovative technologies, and environmental management. It serves businesses across more than 20 industries in the United States, Mexico, and Canada.
This financial move is expected to support the company’s operational needs and strategic initiatives, ensuring Ryder’s continued ability to provide comprehensive logistics services to its clients.
In other recent news, Ryder System Inc. reported its fourth-quarter 2024 earnings, showcasing a positive surprise in earnings per share (EPS) while experiencing a shortfall in revenue. Ryder’s EPS reached $3.45, surpassing analyst expectations of $3.39, although revenue fell short at $3.2 billion against the anticipated $3.31 billion. Despite the revenue miss, the company saw a 7% year-over-year increase in operating revenue, driven by strategic acquisitions. Ryder’s management expressed confidence in the company’s growth trajectory, highlighting a focus on supply chain and dedicated services. The firm anticipates a modest 2% revenue growth in 2025, with an expected comparable EPS range of $13 to $14. Notably, Ryder forecasts generating $300 to $400 million in free cash flow for 2025. Analysts from firms such as Morgan Stanley and Vertical Research Partners have taken note of Ryder’s strategic initiatives and growth prospects.
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