PAYC · Paycom Software, Inc.

Paycom Software, Inc. has significantly expanded its liquidity through the Amended and Restated Credit Agreement, increasing the revolving credit facility from prior levels to $2.125 billion, with potential to reach $2.875 billion via incremental commitments. This extension to April 23, 2031, provides long-term flexibility for operations, acquisitions, and share repurchases amid $675 million current utilization. Interest pricing ties directly to leverage performance, with SOFR margins starting at 1.25% (under 1.0x leverage) and scaling to 2.00% (3.0x+), alongside a low commitment fee structure (0.20%-0.275%). The 3.50x leverage cap and 3.00x interest coverage maintain discipline while allowing 'Ratio Debt' for additional secured (3.00x) or unsecured (3.50x) borrowing. Security remains comprehensive over personal property, with standard events of default including acceleration and a 200bps penalty rate. This refinancing replaces the July 2022 agreement, loosening certain negative covenants while introducing dynamic covenant tightening if future debt imposes stricter terms, benefiting lenders. For investors, the facility signals robust banking relationships with JPMorgan and others, supporting capital returns and growth without immediate maturity pressure.