Paylocity Enters $1.75B Amended Revolving Credit Agreement

What Happened
Paylocity Holding Corporation announced on September 17, 2026 that it entered into an Amended and Restated Revolving Credit Agreement (the "A&R Revolving Credit Agreement") with PNC Bank, National Association as administrative agent and other lenders. The facility provides a $1.75 billion senior secured revolving credit line (including $175.0 million sublimits for swing loans and $175.0 million for letters of credit), matures on September 17, 2031, and had $81.25 million outstanding as of the effective date.

Key Details

• Facility size: $1.75 billion revolving credit facility; $175M swing loan sublimit; $175M letter of credit sublimit.
• Outstanding and optional capacity: $81.25M outstanding at signing; company may request up to $875M additional commitments (subject to lender approval and conditions).
• Pricing & fees: interest tied to Term SOFR or adjusted base rate plus margins (Term SOFR margin 1.00%–1.625%; base rate margin 0.0%–0.625%), quarterly commitment fee 0.10%–0.25%, and letter of credit fees (0.125% fronting fee + participation fees 1.00%–1.625%).
• Covenants & security: maximum net total leverage ratio of 4.00:1.00; minimum interest coverage ratio of 2.00:1.00; obligations guaranteed by material subsidiaries and secured by substantially all assets.
• Other: maturity Sept 17, 2031 with up to two one‑year extension requests (lenders not obligated to grant); customary events of default and remedies, including possible acceleration, posting cash collateral for letters of credit, and a 2.0% interest rate increase on default.

Why It Matters
This agreement updates Paylocity’s credit profile and provides sizable liquidity flexibility through a large, multi‑year revolving facility that supports working capital, capital expenditures, acquisitions, share repurchases and other corporate needs. Key financial covenants (maximum leverage and minimum interest coverage) and security provisions are material to investors because they affect financial flexibility and potential consequences if covenants are breached. The availability of additional commitments and the long maturity date reduce short‑term refinancing risk, while pricing tied to SOFR means interest expense will vary with market rates.