By Cristal Cody
Tupelo, Miss., Feb. 26 – J.B. Hunt Transport Services Inc. priced $700 million of 3.875% seven-year senior notes (Baa1/BBB+) on the tight side of guidance on Tuesday at a spread of 135 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.994 to yield 3.876%.
The notes were talked to yield in the Treasuries plus 140 bps area, plus or minus 5 bps.
BofA Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., BB&T Capital Markets and Regions Securities LLC were the bookrunners.
The notes are guaranteed by J.B. Hunt Transport, Inc.
Proceeds will be used to repay $250 million of 2.4% senior notes that mature on March 15, 2019, to repay $460 million of long-term debt under the company’s revolver and for other general corporate purposes.
J.B. Hunt is a Lowell, Ark.-based provider of supply chain solutions for a variety of customers.
| Issuer: | J.B. Hunt Transport Services Inc.
|
| Guarantor: | J.B. Hunt Transport, Inc.
|
| Amount: | $700 million
|
| Description: | Senior notes
|
| Maturity: | March 1, 2026
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., BB&T Capital Markets and Regions Securities LLC
|
| Co-managers: | BOK Financial Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Coupon: | 3.875%
|
| Price: | 99.994
|
| Yield: | 3.876%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before Jan. 1, 2026 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Feb. 26
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| Settlement date: | March 1
|
| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 5 bps; initial talk at Treasuries plus 150 bps area
|
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