J.B. Hunt amends, restates credit facility; upsizes to $1.5 billion

By William Gullotti

Buffalo, N.Y., Oct. 3 – J.B. Hunt Transport, Inc., with parent company J.B. Hunt Transport Services, Inc. as guarantor, amended and restated its credit agreement with Bank of America, NA as administrative agent on Sept. 27, according to an 8-K filing with the Securities and Exchange Commission.

The upsized facility amended and restated the company’s $750 million revolving credit agreement dated Sept. 25, 2018.

The $1.5 billion facility is composed of an upsized $1 billion revolver and lender commitments to fund up to $500 million of term loans.

The revolver, which matures Sept. 27, 2027, includes an option to request an increase in the total commitment of up to $300 million as well as two one-year extensions of the maturity date. There is also a $100 million sublimit on swingline loans and a $75 million sublimit on letters of credit for the revolving facility.

The $500 million in commitments for the term loans must be exercised within nine months of Sept. 27. If the commitments are funded, the term loans have a fixed maturity date scheduled on Sept. 27, 2025.

Revolver borrowings bear interest at SOFR plus a margin ranging from 67.5 basis points to 120 bps, depending on the company’s debt ratings. The revolver also has a facility fee that ranges from 7.5 bps to 17.5 bps, determined with the same criteria.

The term loans, if funded, will bear interest at SOFR plus a margin ranging from 75 bps to 137.5 bps and have a ticking fee ranging from 7.5 bps to 17.5 bps. Margins and fees for the term loans are determined with the same criteria as the revolver.

The company is required to maintain certain covenants and financial ratios under the credit agreement.

Facility proceeds may be used for equipment purchases, repurchases of common stock, refinancing existing debt and other working capital purposes.

In addition to serving as administrative agent, BofA is also the swingline lender.

BofA Securities Inc., JPMorgan Chase Bank, NA and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

JPMorgan and Truist Bank are the syndication agents.

J.B. Hunt is a Lowell, Ark.-based full truckload transportation and delivery service company.

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