Item 1.01. Entry into a Material Definitive Agreement.
On
The 364-Day Facility replaced the Company's prior
Two borrowing options will be available under the 364-Day Facility: (i) a competitive advance option and (ii) a revolving credit option. The competitive advance option will be provided on an uncommitted competitive advance basis through an auction mechanism. The revolving credit will be provided on a committed basis. Under each option, amounts borrowed and repaid may be reborrowed subject to availability under the 364-Day Facility.
The Lenders' commitments under the 364-Day Facility will expire on
Under the 364-Day Facility, interest under a competitive advance option will be payable at the rates obtained from bids selected by the Company in accordance with the competitive auction procedures set forth in the 364-Day Facility.
At the Company's option, under the 364-Day Facility, revolving loans denominated
in
In addition, the Company will pay a commitment fee on the aggregate unused
commitments at a rate of 0.0175% per annum. Also, the Company will pay a
term-out fee of 0.75% of the amount of any loans outstanding under the 364-Day
Facility after
The 364-Day Facility's other terms are substantially similar to the terms of the facility it replaced, including customary covenants that restrict the Company's and its borrowing subsidiaries' ability to create liens or other encumbrances, enter into sale and leaseback transactions and enter into consolidations, mergers and transfers of all or substantially all of their respective assets. The 364-Day Facility contains customary events of default that would permit the lenders to accelerate the loans, including the failure to make timely payments under the 364-Day Facility or other material indebtedness, the failure to satisfy covenants and specified events of bankruptcy and insolvency.
The Company has agreed to guarantee any obligations of any of its subsidiaries that are entitled to borrow the funds under the 364-Day Facility. Borrowings under the 364-Day Facility may be used for general corporate purposes.
The 364-Day Facility is led by
Certain of the lenders under the 364-Day Facility, and their respective affiliates, have performed, and may in the future perform for the Company and its subsidiaries, various commercial banking, investment banking, underwriting and other financial advisory services, for which they have received, and will receive, customary fees and expenses.
The foregoing description is qualified in its entirety by reference to the 364-Day Facility, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits Exhibit 364-Day Credit Agreement, dated as ofJuly 1, 2022 , among Automatic 10.1Data 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. andDeutsche Bank Securities Inc. , as Syndication Agents, and Barclays Bank PLC andMUFG Bank, Ltd. , as Documentation Agents. Exhibit Cover Page Interactive Data File (embedded within the Inline XBRL 104 document).
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