Paychex gets $205 million unsecured revolver at Libor plus 75 bps

By Wendy Van Sickle

Columbus, Ohio, Feb. 11 – Paychex, Inc. and Paychex Advance LLC entered into a credit agreement on Feb. 6 that provides for a new $250 million three-year unsecured revolver, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 62.5 basis points to 112.5 bps, depending on leverage. The commitment fee ranges from 5 bps to 15 bps on the same basis.

Initially, interest is Libor plus 75 bps. The commitment fee is 7.5 bps.

The revolver matures on Feb. 6, 2023.

PNC Bank, NA is the administrative agent.

Borrowings will be used for general corporate purposes.

The new revolver replaces the company’s $150 million three-year unsecured revolver entered into on March 17, 2016.

The existing $1 billion five-year unsecured credit facility that Paychex of New York LLC entered into on July 31, 2019, the existing $500 million four-year unsecured revolver which Paychex of New York entered into on Aug. 17, 2017, 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, 2019, 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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