Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 18

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 2
Chunk 18
---
    17.6

    $
     
    1,982.4

27 

Amounts outstanding under the PNC credit facility as of February 28, 2025 remain outstanding as of the date of this report.

Details of borrowings under each credit facility during the third quarter were as follows:

    For the three months ended February 28, 2025

    Credit Facility

    $1 Billion

    $750 Million

    $250 Million

    $ in millions

    JPM

    JPM

    PNC

    Number of days borrowed

    —

    —

    90

    Maximum amount borrowed
     
    $
     
    —

    $
     
    —

    $
     
    18.2

    Weighted-average amount borrowed
     
    $
     
    —

    $
     
    —

    $
     
    17.8

    Weighted-average interest rate

    —
     
    %

    —
     
    %

    4.57
     
    %

We primarily use short-term borrowings to settle client fund obligations, rather than liquidating previously collected client funds invested in our long-term AFS investment portfolio.

We expect to have access to the amounts available under our current credit facilities to meet our ongoing financial needs. However, if we experience reductions in our operating cash flows due to any of the risk factors outlined in, but not limited to, Item 1A in our Form 10-K for fiscal 2024 and other SEC filings, we may need to adjust our capital, operating and other discretionary spending to realign our working capital requirements with the capital resources available to us. Furthermore, if we determine the need for additional short-term liquidity, there is no assurance that such financing, if pursued and obtained, would be adequate or on terms acceptable to us.

Letters of credit: As of February 28, 2025, we had irrevocable standby letters of credit available totaling $168.7 million, primarily to secure commitments for certain insurance policies. The letters of credit expire at various dates between March 03, 2025 and February 28, 2026. No amounts were outstanding on these letters of credit during the third quarter or as of February 28, 2025. 

Long-term financing: We have borrowed $800.0 million through the issuance of long-term private placement debt. Refer to Note N of the Notes to Consolidated Financial Statements contained in Item 8