Categories : fleet repair

Moody’s appoints Baa3 to Penske Truck Leasing Co., L.P.’s new senior unsecured notes

New York, July 16, 2015– Moody’s Investors Service (“Moody’s”) has actually designated a Baa3 rating to Penske Truck Leasing Co., L.P.’s (“PTL”) $500 million issuance of senior unsecured notes due 2020. Profits are anticipated to be utilized to pay off outstanding borrowings under the business’s revolving credit and ABS facilities. The rating outlook is steady. RATINGS RATIONALE The Baa3 rating reflects PTL’s reputable position in full-service truck leasing, truck leasings and agreement maintenance services for third-party fleets. Free cash flow tends to be counter-cyclical because the business curtails fleet financial investments during economic slumps while it increases fleet spending throughout recuperations and growth. The counter-cyclical nature of free capital throughout declines offsets the fairly high financial obligation to EBITDA for the investment grade score classification. Moody’s expects Financial obligation to EBITDA of around 4.0 x over the next YEAR with the addition of the brand-new notes. Leverage will certainly remain elevated as free capital will continue to be negative provided awaited fleet financial investments in lieu of financial obligation reduction. Funds from operations to financial obligation is anticipated to be about 22 % and operating margins will certainly be close to 11 %, reflecting our expectations of strong need for the business’s truck leasing and rental offerings, in addition to for its logistics services. Tangible Typical Equity was roughly $1.25 billion since March 31, 2015, leading to Tangible Common Equity to Concrete Managed Assets of about 12.7 %, which is in line with current levels. The steady ratings outlook is predicated on Moody’s expectation of continuing strong market conditions, leading to running efficiency and credit metrics over the next 12 months that remain supportive of the Baa3 rating. The scores could be upgraded if the business can accomplish material and sustainable deleveraging, while preserving and expanding its fleet as appropriate provided the financial cycle. Particularly, expectations of susta …
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Truck Fire Won’t Modification TFC Recyling’s CNG Plans

Click here for 1Q15 Marketer Rankings A heavy-duty truck sustained by compressed gas (CNG) ignited, ruining the truck and blackening the side of a neighboring home in Chesapeake, VA. No injuries were reported. The incident did not include the TFC Recycling decline truck’& rsquo; s CNG fuel tanks, nor was there a crash. The truck ignited when hydraulic fluid leaked onto the truck body and was fired up when it was available in contact with the ride’s exhaust system, TFC Recycling Vice President Paul Stacharczyk told Fleets & Fuels newsletter. TFC officials reported that the CNG tanks vented as they are developed to do when under direct exposure to external heat through integrated pressure relief valves. That vented gas, nevertheless, was sparked by the earlier hydraulic fluid-caused fire. This was the first natural gas automobile (NGV) fire ever reported in Virginia, according to state Clean Cities program authorities. Stacharczyk informed NGI that the investigation and discussions with TFC’s CNG equipment providers are continuous, however the event will not alter the business’s strategies to run more of its fleet on natural gas. “We still have a high regard for the technology; this was just, for lack of a better term, a fluke mishap,” he stated. “I’m positive when the examination is done we will be able to make the appropriate modifications, so it is not going to change our approach at all.” Late last month in Buffalo, NY, a CSX freight train rammed into a CNG-fueled tractor-trailer truck (see Daily GPI, June 26). An explosion and fire emerged when a few of the truck’s CNG fueling tanks were supposedly punctured, resulting in burns to both the truck motorist and train conductor. On the other hand, Sempra Energy’s Southern California Gas Co. (SoCalGas) has actually signed up with forces with the California Trucking Association (CTA) to promote the benefits of NGVs to trucking fleet owner/operators. SoCalGas is now an “Executive Circle Club Partner” in CTA, accordi …
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