false
0000008670
0000008670
2026-06-26
2026-06-26
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date
of earliest event reported): June 26, 2026
| Automatic Data Processing, Inc. |
| (Exact name of registrant
as specified in its charter) |
| |
| Delaware |
|
1-5397 |
|
22-1467904 |
(State or other
jurisdiction
of incorporation
or organization) |
|
(Commission
File Number) |
|
(IRS Employer
Identification
No.) |
| One
ADP Boulevard, Roseland,
New Jersey |
07068 |
| (Address of principal executive
offices) |
(Zip Code) |
| |
|
| (973)
974-5000 |
| (Registrant's
telephone number, including area code) |
| |
| N/A |
(Former name
or former address, if changed since last report)
|
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425) |
| |
|
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
|
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| |
|
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered
pursuant to Section 12(b) of the Act:
| Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange
on
which registered |
| Common Stock, $0.10 Par Value (voting) |
|
ADP |
|
NASDAQ Global Select Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 1.01 | Entry into a Material Definitive Agreement. |
On June 26, 2026, Automatic Data Processing,
Inc., a Delaware corporation (the “Company”), entered into a $5.7 billion 364-Day Credit Agreement (the “364-Day Facility”)
and a $3.5 billion Five-Year Credit Agreement (the “Five-Year Facility,” and together with the 364-Day Facility, the “New
Facilities”) with a group of lenders (the “Lenders”).
The Five-Year Facility contains an accordion
feature under which the aggregate commitment can be increased by $500 million to an aggregate principal amount of $4 billion, subject
to the availability of additional commitments. The 364-Day Facility replaced the Company’s prior $4.55 billion 364-day facility,
entered into on June 27, 2025, and the Five-Year Facility replaced the Company’s prior $3.5 billion five-year facility, entered
into on June 28, 2024, both of which were terminated on June 26, 2026. JPMorgan Chase Bank, N.A. acts as Administrative Agent, and Bank
of America, N.A., BNP Paribas, Wells Fargo Bank, N.A. and Deutsche Bank Securities Inc., as Syndication Agents, for each of the New Facilities.
The New Facilities will have a revolving credit
option, which in the case of the Five-Year Facility is comprised of U.S. Dollar, Canadian Dollar and Euro tranche loans. The revolving
credit will be provided on a committed basis. Amounts borrowed and repaid may be reborrowed subject to availability under each New Facility.
The Lenders’ commitments under the 364-Day
Facility will expire on June 25, 2027 and any borrowings outstanding will mature and be payable on such date (or, at the option of the
Company, subject to the accuracy of all representations and warranties and the absence of any default, on June 25, 2028). The Lenders’
commitments under the Five-Year Facility will expire and the borrowings thereunder will mature on June 26, 2031. The Company may, from
time to time and by written notice to the Administrative Agent given not fewer than 30 days and not more than 120 days prior to any anniversary
of June 26, 2026, request that the Lenders extend the commitments under the Five-Year Facility for an additional period of one year.
At the Company’s option, under each New
Facility, revolving loans denominated in U.S. Dollars will bear interest at a floating rate per annum based on a margin over a Term SOFR-based
rate for a one, three or six month interest period as selected by the Company or a margin over a floating rate per annum determined by
reference to the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum, and (iii) a Term SOFR-based
rate for a one month interest period plus 1% per annum.
In addition, the Company will pay a commitment
fee on the aggregate unused commitments as follows: (i) in the case of the 364-Day Facility, at a rate of 0.0175% per annum, and (ii)
in the case of the Five-Year Facility, at a rate (ranging from 0.04% to 0.10%) determined by Company’s issuer rating established
by Fitch Ratings Inc., Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. Also, the Company will pay
to each Lender a term-out fee of 0.75% of the amount of any loans outstanding under the 364-Day Facility on June 25, 2027.
The New Facilities’ other terms are substantially
similar to the terms of the facility they 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. Each New Facility contains customary events of default that
would permit the lenders to accelerate the loans, including the failure to make timely payments under the New Facilities 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 New Facilities. Borrowings under the New Facilities may be
used for general corporate purposes.
The New Facilities are led by J.P. Morgan Chase
Bank, N.A., BofA Securities, Inc., BNP Paribas Securities Corp., Wells Fargo Securities, LLC and Deutsche Bank Securities Inc., as Joint
Lead Arrangers and Joint Bookrunners. Barclays Bank PLC and MUFG Bank, Ltd. are Documentation Agents for each of the New Facilities.
Certain of the Lenders, 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 New Facilities, which are filed as Exhibits 10.1 and 10.2 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 10.1 |
|
364-Day Credit Agreement, dated as of June 26, 2026, among Automatic Data 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. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC and MUFG Bank, Ltd., as Documentation Agents. |
| |
|
|
| Exhibit 10.2 |
|
Five-Year Credit Agreement, dated as of June 26, 2026, among Automatic Data 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. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC and MUFG Bank, Ltd., as Documentation Agents. |
| |
|
|
| Exhibit 104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: June 26, 2026 |
AUTOMATIC DATA PROCESSING, INC. |
|
| |
|
|
|
|
| |
By: |
/s/ David Kwon |
|
| |
|
Name: |
David Kwon |
|
| |
|
Title: |
Vice President |
|
