Paycom Software, Inc. 8-K

What Happened
Paycom Software, Inc. filed an 8-K on April 23, 2026 disclosing an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. and other lenders that replaces its July 29, 2022 credit agreement. The agreement establishes a senior secured revolving credit facility of up to $2.125 billion, with an option to request up to an additional $750 million subject to lender commitments and conditions. Loans under the facility mature on April 23, 2031, and borrowings are secured by a senior security interest in the Loan Parties’ personal property. As of April 23, 2026, about $675 million was outstanding under the facility.

Key Details

• Facility size: $2.125 billion revolving credit facility; incremental accordion option up to $750.0 million.
• Outstanding borrowings: approximately $675 million as of April 23, 2026.
• Maturity: April 23, 2031. Security: senior lien on all personal property of the Loan Parties.
• Pricing: interest at ABR + margin or Term SOFR (or daily SOFR if Term SOFR unavailable) + margin. Margins for ABR loans: 0.25%–1.00% (tiered by Consolidated Leverage Ratio). Margins for SOFR loans: 1.25%–2.00% (tiered).
• Fees & covenants: quarterly commitment fee on undrawn commitments (0.20%–0.275% based on leverage tiers). Financial maintenance covenants require (a) Consolidated Interest Coverage Ratio ≥ 3.00:1.00 and (b) Consolidated Leverage Ratio ≤ 3.50:1.00. Pro forma tests for additional (“Ratio”) debt limit secured debt to ≤ 3.00 and unsecured to ≤ 3.50 leverage.
• Events of default and remedies are customary (acceleration, collateral posting for letters of credit, termination of commitments); lenders may increase interest by 2.0% in certain circumstances.

Why It Matters
This updated credit agreement secures Paycom’s short- and medium-term liquidity by keeping a large, committed revolving line (and a sizeable incremental option) in place through 2031. The size, pricing and covenant levels frame the company’s borrowing cost and flexibility for working capital, permitted acquisitions and share repurchases. Investors should note the current outstanding borrowings (~$675M), the covenant thresholds that could restrict additional leverage, and that the facility is senior secured (which affects creditor priority).