Summary
Automatic Data Processing, Inc. (ADP) has announced the entry into a new $3.225 billion 364-Day Credit Agreement, which became effective on June 10, 2020. This new facility replaces a prior $3.80 billion 364-day facility that was terminated on the same date. The company has maintained its existing $3.75 billion five-year credit agreement and a $2.75 billion five-year credit agreement, ensuring continued access to significant long-term financing. The new 364-day facility offers flexibility through competitive advance and revolving credit options, with borrowing available for general corporate purposes. The facility is scheduled to mature on June 9, 2021, with an option for the company to extend maturity to June 9, 2022. This strategic move provides ADP with robust short-term liquidity while maintaining its overall strong credit profile and financial flexibility during a dynamic economic period.
Key Highlights
- 1ADP entered into a new $3.225 billion 364-Day Credit Agreement on June 10, 2020.
- 2This new facility replaces a previously existing $3.80 billion 364-day credit line.
- 3The company's two existing five-year credit agreements (totaling $6.5 billion) remain in full effect.
- 4The 364-Day Facility offers both competitive advance and revolving credit options for flexibility.
- 5Borrowings under the new facility can be used for general corporate purposes.
- 6The facility matures on June 9, 2021, with a potential one-year extension to June 9, 2022.
- 7JPMorgan Chase Bank, N.A. is the Administrative Agent, supported by other major financial institutions as Syndication Agents.