ADP announced it has entered into new credit agreements totaling approximately $8 billion with a consortium of lenders. These facilities are designed to enhance the company's financial flexibility and support its ongoing operations.
The new agreements include a $4.55 billion facility with a duration of approximately one year, and a $2.5 billion facility extending over a five-year period. The five-year agreement also features an option to increase the aggregate commitment by $500 million, potentially reaching $3 billion.
These new credit lines replace prior facilities that ADP had entered into over the last two years. The secured funding ensures ADP maintains robust liquidity, which is essential for its client funds investment strategy and general corporate purposes.
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