Paylocity Holding Corporation entered into an amended and restated revolving credit agreement on September 17, 2026. The agreement replaces the previous credit facility that was originally dated July 17, 2019, and amended in 2022 and 2024.
The new agreement establishes a $1.75 billion senior secured revolving credit facility. This facility includes a $175.0 million sublimit for swing loans and a $175.0 million sublimit for letters of credit. The facility matures on September 17, 2031.
As of the effective date, an aggregate of $81.25 million was outstanding under the new agreement. The company has the right to request increased revolving commitments of up to $875.0 million. Additionally, the company may request a one-year extension of the expiration date on not more than two occasions, subject to lender approval and conditions.
Borrowings under the facility bear interest based on either Term SOFR or an adjusted base rate, plus an applicable margin ranging from 0.0% to 1.625%. The company is also required to pay quarterly commitment fees ranging from 0.10% to 0.25% per annum on undrawn commitments, as well as fees for letters of credit. The facility requires the company to maintain a maximum net total leverage ratio of 4.00 to 1.00 and a minimum interest coverage ratio of 2.00 to 1.00.
The obligations under the facility are guaranteed by each existing and future direct or indirect material subsidiary of the company and secured by substantially all of the company's assets. The proceeds of the loans are to be used for working capital, capital expenditures, general corporate purposes, and permitted acquisitions, share repurchases, and distributions.
