Ryder Truck Rental is looking to tap the securitization market with a truck lease-backed deal worth as much as $1 billion, according to an S-1 filing with the Securities & Exchange Commission.
Merrill Lynch will likely be lead manager, a source familiar with the transaction said. The deal will be structured in five tranches of A-class notes, plus certificates. As of press time last week, further details were unavailable.
Truck leases of this kind fall somewhere between equipment leases and automobile leases, as the contracts are to commercial obligors, with terms in the four- to five-year range.
Ryder last tapped the market in November 1999 via Merrill, placing $292 million worth of leases in the public market, and privately placing an additional $10 million, according to Thomson Financial Securities Data. Prior to that, the company securitized a portfolio in 1998.