JACK HENRY & ASSOCIATES INC 8-K

What Happened
Jack Henry & Associates, Inc. announced on March 25, 2026 that it entered into a $1.0 billion, five-year revolving unsecured Credit Agreement with U.S. Bank National Association as Administrative Agent. The new Credit Agreement replaces the company’s prior $600 million revolving credit facility (dated August 31, 2022), which was terminated at closing. Approximately $80 million that was outstanding under the prior facility was refinanced with a borrowing under the new Credit Agreement; there were no early termination penalties.

Key Details

• Credit facility: $1.0 billion, five-year revolving, unsecured; administrative agent U.S. Bank NA.
• Use of proceeds: refinance existing debt, capital expenditures, equity repurchases and general corporate purposes.
• Pricing: variable interest — company may choose adjusted Term SOFR‑based or an alternate base rate (highest of 0.00%, prime, Fed funds +0.50%, or 1‑month adjusted Term SOFR +1.00%) plus a margin tied to the company’s leverage ratio.
• Financial covenants: minimum Consolidated EBITDA to Consolidated Interest Expense of 3.50:1.00; maximum Net Leverage Ratio 3.50:1.00 (steps up to 4.00:1.00 for four quarters after any acquisition with purchase price ≥ $100M). Facility is guaranteed by Jack Henry’s wholly owned material domestic subsidiaries.

Why It Matters
This agreement increases the company’s committed revolving capacity from $600M to $1.0B and refinances outstanding borrowings, giving Jack Henry more liquidity and flexibility for debt management, capital spending and potential share repurchases. Investors should note the covenant levels and interest pricing are tied to leverage, so future borrowing costs and covenant headroom will depend on Jack Henry’s operating results and leverage moves (including any large acquisitions that trigger the temporary covenant step-up). The new facility is unsecured and contains customary events of default and lender protections.