Workday, Inc. entered into a new Credit Agreement on October 1, 2026, replacing its previous credit facility signed in April 2022. The new agreement provides for a revolving credit facility with an aggregate principal amount of $1.5 billion, up from the previous $1 billion facility.
The agreement was executed among Workday, its subsidiaries, and a syndicate of lenders. Wells Fargo Bank, National Association, serves as the administrative agent, swing line lender, and an L/C issuer, while Bank of America, N.A., Barclays Bank PLC, and Morgan Stanley Senior Funding, Inc. act as syndication agents and joint lead arrangers and joint bookrunners.
Under the terms of the agreement, revolving loans may be borrowed, repaid, and reborrowed until October 1, 2031. Workday has the option to request, no more than two times during the term, that lenders extend the maturity date for one year. As of the closing date, Workday had no outstanding revolving loans under the facility.
Interest rates under the Credit Agreement are determined by Workday’s choice between a Consolidated Leverage Ratio or a Debt Rating, with margins ranging from 0.000% to 1.500% depending on the metric. The agreement includes a quarterly financial covenant requiring Workday to maintain a maximum leverage ratio of 3.50 to 1.00, subject to a step-up to 4.50 to 1.00 following a Qualified Acquisition.
The Credit Agreement also includes customary events of default, such as non-payment of obligations, violation of covenants, bankruptcy events, and material judgments. The facility allows for loans denominated in U.S. Dollars, Euros, Sterling, and Canadian Dollars, with a maximum aggregate of $525 million for Alternative Currencies.
