Paychex Enters New Credit Agreement
Ticker: PAYX · Form: 8-K · Filed: Apr 16, 2024 · CIK: 723531
Sentiment: neutral
Topics: debt, financing
Related Tickers: PAYX
TL;DR
Paychex just signed a new credit deal, locking in financing.
AI Summary
On April 12, 2024, Paychex, Inc. entered into a material definitive agreement, specifically a credit agreement, which creates a direct financial obligation for the company. This agreement is a significant event for Paychex, impacting its financial structure and obligations.
Why It Matters
This filing indicates Paychex has secured new financing or restructured existing debt, which could impact its financial flexibility and future investment capacity.
Risk Assessment
Risk Level: low — Entering into a credit agreement is a standard financial activity for a company of Paychex's size and is not inherently indicative of distress.
Key Players & Entities
- Paychex, Inc. (company) — Registrant
- April 12, 2024 (date) — Date of earliest event reported
FAQ
What is the nature of the material definitive agreement Paychex entered into?
Paychex entered into a credit agreement, as indicated by the filing.
When was the earliest event reported in this 8-K filing?
The earliest event reported was on April 12, 2024.
What is Paychex, Inc.'s principal executive office address?
Paychex, Inc.'s principal executive office is located at 911 Panorama Trail South, Rochester, New York, 14625-2396.
What is the Commission File Number for Paychex, Inc.?
The Commission File Number for Paychex, Inc. is 000-11330.
What is the IRS Employer Identification Number for Paychex, Inc.?
The IRS Employer Identification Number for Paychex, Inc. is 16-1124166.
Filing Stats: 949 words · 4 min read · ~3 pages · Grade level 12.1 · Accepted 2024-04-16 16:41:47
Key Financial Figures
- $0.01 — nge on which registered Common Stock, $0.01 par value PAYX Nasdaq Global Select
- $1.0 b — 2019 Credit Facility Amendment") to the $1.0 billion, five-year, unsecured, revolving
- $750.0 m — 2017 Credit Facility Amendment") to the $750.0 million, five-year, unsecured, revolving
Filing Documents
- payx-20240412.htm (8-K) — 44KB
- payx-ex10_1.htm (EX-10.1) — 1666KB
- payx-ex10_2.htm (EX-10.2) — 1621KB
- img195469908_0.jpg (GRAPHIC) — 3KB
- img196393429_0.jpg (GRAPHIC) — 3KB
- 0000950170-24-044821.txt ( ) — 3963KB
- payx-20240412.xsd (EX-101.SCH) — 23KB
- payx-20240412_htm.xml (XML) — 4KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. Amendment to 2019 Credit Facility On April 12, 2024, Paychex of New York LLC, a Delaware limited liability company ("PoNY") and Paychex, Inc., a Delaware corporation (the "Parent"), entered into an amendment (the "2019 Credit Facility Amendment") to the $1.0 billion, five-year, unsecured, revolving credit facility established on July 31, 2019 (the "2019 Credit Facility"), and last amended on September 17, 2021, in favor of PoNY as borrower by a syndicate of lenders for which JPMorgan Chase Bank, N.A. acts as Administrative Agent. The 2019 Credit Facility Amendment, among other things, (a) extends the maturity date of the 2019 Credit Facility from July 31, 2024 to April 12, 2029, (b) amends the interest rate provisions under the 2019 Credit Facility, (c) amends the lenders under the syndication and (d) makes other ministerial changes to the 2019 Credit Facility. Amendment to 2017 Credit Facility On April 12, 2024, PoNY and the Parent entered into an amendment (the "2017 Credit Facility Amendment") to the $750.0 million, five-year, unsecured, revolving credit facility established on August 17, 2017 (the "2017 Credit Facility"), and last amended on September 17, 2021, in favor of PoNY as borrower by a syndicate of lenders for which JPMorgan Chase Bank, N.A. acts as Administrative Agent. The 2017 Credit Facility Amendment, among other things, (a) amends the interest rate provisions under the 2017 Credit Facility, and (b) makes other ministerial changes to the 2017 Credit Facility. The other terms of both the 2019 Credit Facility and the 2017 Credit Facility are substantially similar to the original terms, including customary covenants which, among other things, include certain restrictions on the Parent and certain of its Subsidiaries' (including PoNY) ability to borrow, to grant liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers and tran
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. Exhibit Description Exhibit 10.1 Amendment No. 3 to 2019 Credit Agreement, dated as of April 12, 2024, by and among PoNY, the Parent, the lender parties thereto, JPMorgan Chase Bank, N.A. as Administrative Agent and others. Exhibit 10.2 Amendment No. 5 to 2017 Credit Agreement, dated as of April 12, 2024, by and among PoNY, the Parent, the lender parties thereto, JPMorgan Chase Bank, N.A. as Administrative Agent and others. Exhibit 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PAYCHEX, INC. Date: April 16, 2024 By: /s/ Robert L. Schrader Robert L. Schrader Senior Vice President and Chief Financial Officer