ADP Enters Material Definitive Agreement

TL;DR

ADP just signed a big deal, could mean new money.

AI Summary

On June 28, 2024, Automatic Data Processing, Inc. (ADP) entered into a material definitive agreement. This filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant.

Why It Matters

This filing signals a significant new contract or financial commitment for ADP, which could impact its future revenue and operational structure.

Risk Assessment

Risk Level: medium — Material definitive agreements can introduce new financial obligations or strategic shifts that carry inherent business risks.

Key Players & Entities

• Automatic Data Processing, Inc. (company) — Registrant
• June 28, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.10 — e on which registered Common Stock, $0.10 Par Value (voting) ADP NASDAQ Globa
• $4.55 billion — oration (the "Company"), entered into a $4.55 billion 364-Day Credit Agreement (the "364-Day
• $3.5 billion — greement (the "364-Day Facility") and a $3.5 billion Five-Year Credit Agreement (the "Five-Y
• $500 million — ggregate commitment can be increased by $500 million to an aggregate principal amount of $4
• $4 b — ion to an aggregate principal amount of $4 billion, subject to the availability of a
• $4.25 billion — y Facility replaced the Company's prior $4.25 billion 364-day facility, entered into on June
• $3.20 billion — r Facility replaced the Company's prior $3.20 billion five-year facility, entered into on Jun

Filing Documents

• eh240501584_8k.htm (8-K) — 35KB
• eh240501584_ex1001.htm (EX-10.1) — 450KB
• eh240501584_ex1002.htm (EX-10.2) — 515KB
• 0000950142-24-001814.txt ( ) — 1384KB
• adp-20240628.xsd (EX-101.SCH) — 3KB
• adp-20240628_lab.xml (EX-101.LAB) — 33KB
• adp-20240628_pre.xml (EX-101.PRE) — 22KB
• eh240501584_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On June 28, 2024, Automatic Data Processing, Inc., a Delaware corporation (the "Company"), entered into a $4.55 billion 364-Day Credit Agreement (the "364-Day Facility") and a $3.5 billion Five-Year Credit Agreement (the "Five-Year Facility," and together with the 364-Day Facility, the "New Facilities") with a group of lenders (the "Lenders"). The Five-Year Facility contains an accordion feature under which the aggregate commitment can be increased by $500 million to an aggregate principal amount of $4 billion, subject to the availability of additional commitments. The 364-Day Facility replaced the Company's prior $4.25 billion 364-day facility, entered into on June 30, 2023, and the Five-Year Facility replaced the Company's prior $3.20 billion five-year facility, entered into on June 9, 2021, both of which were terminated on June 28, 2024. JPMorgan Chase Bank, N.A. acts as Administrative Agent, and Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A. and Deutsche Bank Securities Inc., as Syndication Agents, for each of the New Facilities. The New Facilities will have a revolving credit option, which in the case of the Five-Year Facility is comprised of U.S. Dollar, Canadian Dollar and Euro tranche loans. The revolving credit will be provided on a committed basis. Amounts borrowed and repaid may be reborrowed subject to availability under each New Facility. The Lenders' commitments under the 364-Day Facility will expire on June 27, 2025 and any borrowings outstanding will mature and be payable on such date (or, at the option of the Company, subject to the accuracy of all representations and warranties and the absence of any default, on June 27, 2026). The Lenders' commitments under the Five-Year Facility will expire and the borrowings thereunder will mature on June 28, 2029. The Company may, from time to time and by written notice to the Administrative Agent given not fewer than 30 days and not more th

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit 10.1 364-Day Credit Agreement, dated as of June 28, 2024, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC and MUFG Bank, Ltd., as Documentation Agents. Exhibit 10.2 Five-Year Credit Agreement, dated as of June 28, 2024, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC and MUFG Bank, Ltd., as Documentation Agents. Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

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. Date: June 28, 2024 AUTOMATIC DATA PROCESSING, INC. By: /s/ David Kwon Name: David Kwon Title: Vice President

View Full Filing

View this 8-K filing on SEC EDGAR