Company: ADP
Filing Date: 2025-06-27
Form Type: 8-K
Source: 0000950142-25-001700
Chunk: 1

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-06-27
Form: 8-K
Item: Item 1.01
Chunk 1
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 bear interest at a floating rate per annum based on a margin over a Term SOFR-based
rate for a one, three or six month interest period as selected by the Company or a margin over a floating rate per annum determined by
reference to the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum, and (iii) a Term SOFR-based
rate for a one month interest period plus 1% per annum.

In addition, the Company will pay a commitment
fee on the aggregate unused commitments as follows: (i) in the case of the 364-Day Facility, at a rate of 0.0175% per annum, and (ii)
in the case of the Five-Year Facility, at a rate (ranging from 0.04% to 0.10%) determined by Company’s issuer rating established
by Fitch Ratings Inc., Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. Also, the Company will pay
to each Lender a term-out fee of 0.75% of the amount of any loans outstanding under the 364-Day Facility on June 26, 2026.

The New Facilities’ other terms are substantially
similar to the terms of the facility they replaced, including customary covenants that restrict the Company’s and its borrowing
subsidiaries’ ability to create liens or other encumbrances, enter into sale and leaseback transactions and enter into consolidations,
mergers and transfers of all or substantially all of their respective assets. Each New Facility contains customary events of default that
would permit the lenders to accelerate the loans, including the failure to make timely payments under the New Facilities or other material
indebtedness, the failure to satisfy covenants and specified events of bankruptcy and insolvency.

The Company has agreed to guarantee any obligations
of any of its subsidiaries that are entitled to borrow the funds under the New Facilities. Borrowings under the New Facilities may be
used for general corporate purposes.

The New Facilities are led by J. P. Morgan Chase
Bank, N. A., BofA Securities, Inc., BNP Paribas Securities Corp., Wells Fargo Securities, LLC and Deutsche Bank Securities Inc., as Joint
Lead Arrangers and Joint Bookrunners. Barclays Bank PLC and MUFG Bank, Ltd. are Documentation Agents for each of the New Facilities.

Certain of the Lenders, and their respective
affiliates, have performed