Ryder System entered into a new 364-day unsecured syndicated term loan totaling $400 million with a syndicate of eight large financial institutions.

“Execution of this new term loan further solidifies Ryder’s solid liquidity position. Our business model generates more free cash flow in slower economic environments as capital expenditures decline in our ChoiceLease business,” said Scott Parker, Ryder executive vice president and chief financial officer.

The term loan will be used for working capital and other general corporate purposes of Ryder and its subsidiaries. “We are very pleased with the continued demonstration of financial support and confidence shown by our banking partners,” said Dan Susik, Ryder senior vice president, Finance, and treasurer.

Bank of America Securities acted as a joint lead arranger and joint book runner. Bank of America will serve as administrative agent. MUFG Bank acted as a joint lead arranger, joint bookrunner and as syndication agent. Additionally, BNP Paribas, Mizuho Bank, U.S. Bank, National Association, Truist Bank and PNC Bank, National Association acted as joint lead arrangers and documentation agents. Regions Bank was also a participating lender.