ADP secures $8Bn in new credit facilities
NEW JERSEY, UNITED STATES — Automatic Data Processing, Inc. (ADP), a provider of human resources management software and services, has significantly strengthened its financial position by entering into two substantial credit agreements totaling $8.05 billion.
The deals, finalized on June 28, 2024, include a $4.55 billion 364-day credit agreement and a $3.5 billion five-year credit agreement with a group of lenders.
Expanded credit capacity
The new facilities replace ADP’s previous credit arrangements, increasing the company’s overall credit capacity.
The five-year facility includes an accordion feature that allows for a potential increase of $500 million, bringing the total possible commitment to $4 billion.
These agreements provide ADP with enhanced financial flexibility to support its operations and strategic initiatives.
JPMorgan Chase Bank, N.A. will serve as the administrative agent for both facilities, with Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., and Deutsche Bank Securities Inc. acting as syndication agents.
The commitments under the 364-day facility will expire on June 27, 2025, with the possibility of extending repayment to June 27, 2026. The five-year facility commitments will expire on June 28, 2029, with an option to extend for an additional year.
ADP’s financial performance and global reach
ADP, headquartered in Roseland, New Jersey, has demonstrated strong financial performance in recent years.
For the twelve months ending March 31, 2024, the company reported revenue of $18.912 billion, representing a 7.08% increase year-over-year.
With a global presence, ADP serves clients across multiple countries, including the United States, the United Kingdom, and various European nations. The company’s services span payroll processing, talent management, and other critical HR functions for businesses of all sizes.
The new credit facilities will provide ADP with additional resources to support its international operations and potential expansion efforts.
