Note 4 - Financing Arrangements

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

4. Financing Arrangements

Outstanding borrowings, net of unamortized discount, unamortized debt issuance cost, and fair value swap, under our current financing arrangements consist of the following (in millions):

	March 31, 2019		December 31, 2018
Senior revolving line of credit	$	-	$	307.1
Senior notes		1,284.6		842.0
Less current portion of long-term debt		-		(250.7	)
Total long-term debt	$	1,284.6	$	898.4

Senior

Revolving Line of Credit

At

March 31, 2019,

we were authorized to borrow up to

$750

million under a senior revolving line of credit, which is supported by a credit agreement with a group of banks and expires in

September 2023.

This senior credit facility allows us to request an increase in the total commitment by up to

$250

million and to request a

one

-year extension of the maturity date. The applicable interest rate under this agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the specific type of borrowing, plus an applicable margin based on our credit rating and other fees. At

March 31, 2019,

we had

no

outstanding borrowings under this agreement.

Seni

or Notes

Our senior notes consist of

three

separate issuances. The

first

is

$250

million of

3.85%

senior notes due

March 2024,

which was issued in

March 2014.

Interest payments under this note are due semiannually in

March

and

September

of each year, beginning

September 2014.

The

second

is

$350

million of

3.30%

senior notes due

August 2022,

issued in

August 2015.

Interest payments under this note are due semiannually in

February

and

August

of each year, beginning

February 2016.

The

third

is

$700

million of

3.875%

senior notes due

March 2026,

issued in

March 2019.

Interest payments under this note are due semiannually in

March

and

September

of each year, beginning

September 2019.

All

three

senior notes were issued by J.B. Hunt Transport Services, Inc., a parent-level holding company with

no

significant assets or operations. The notes are guaranteed on a full and unconditional basis by a wholly-owned subsidiary. All other subsidiaries of the parent are minor. We registered these offerings and the sale of the notes under the Securities Act of

1933,

pursuant to shelf registration statements filed in

February 2014

and

January 2019.

All notes are unsecured obligations and rank equally with our existing and future senior unsecured debt. We

may

redeem for cash some or all of the notes based on a redemption price set forth in the note indenture. See Note

5,

Derivative Financial Instruments, for terms of an interest rate swap entered into on the

$350

million of

3.30%

senior notes due

August 2022.

Our

$250

million of

2.40%

senior notes matured in

March 2019.

The entire outstanding balance was paid in full at maturity.

Our financing arrangements require us to maintain certain covenants and financial ratios.  We were in compliance with all covenants and financial ratios at

March 31, 2019.