Paychex gets $1 billion unsecured revolver at Libor plus 87.5 bps

By Sarah Lizee

Olympia, Wash., Aug. 1 – Paychex, Inc. subsidiary Paychex of New York LLC entered into a credit agreement on Wednesday that provides for a $1 billion unsecured revolver due July 31, 2024, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 75 basis points to 125 bps, depending on leverage. The commitment fee ranges from 5 bps to 15 bps on the same basis.

Initially, interest is Libor plus 87.5 bps. The commitment fee is 7.5 bps.

Two borrowing options are available under the facility, including a revolving loan option and a swingline loan option. Both options are provided on a committed basis.

JPMorgan Chase Bank, NA and PNC Capital Markets LLC are joint lead arrangers and joint bookrunners, Bank of America, NA and Wells Fargo Bank, NA are co-documentation agents, JPMorgan is the administrative agent and PNC Bank, NA is the syndication agent.

Borrowings will be used for general corporate purposes.

The new revolver replaces the company’s $1 billion five-year unsecured revolver entered into on Aug. 5, 2015.

The existing $500 million five-year unsecured credit facility the company entered into on Aug. 17, 2017, the existing $150 million four-year unsecured revolver which subsidiary Paychex Advance LLC entered into on March 17, 2016, the existing $400 million of 4.07% senior notes, series A and the existing $400 million of 4.25% senior notes, series B, which the company issued on Jan. 9, will continue to remain in full force and effect, the filing noted.

Paychex is a provider of payroll, human resource and benefits outsourcing services for small- to medium-sized businesses. It is based in Rochester, N.Y.

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