Ceridian HCM Holding Inc. Announces First Amendment to Credit Agreement for Refinancing Term Loans

Ceridian HCM Holding Inc. (NYSE:CDAY) and its wholly-owned subsidiaries have recently entered into a significant agreement to amend their existing credit agreement. The company, also known as Dayforce, Inc., and its Subsidiary Guarantors made the First Amendment to Credit Agreement on February 14, 2025. This Amendment was made in collaboration with lenders and JPMorgan Chase Bank, N.A., serving as the administrative agent and collateral agent.

The Amendment primarily focused on repricing and introduced a new senior secured term loan facility known as the Refinancing Term Loans. These new loans effectively refinanced and replaced all outstanding term loans under the Existing Credit Agreement, significantly impacting the interest rates on these loans. Noteworthy changes include a reduction in the interest rate margin for term loans referring to SOFR from 2.50% to 2.00% per annum. Similarly, the interest rate margin for alternate base rate loans was reduced from 1.50% to 1.00% per annum.

Moreover, the Amendment brought about a 25 basis point reduction in the interest rate margin for all revolving loans under the Existing Credit Agreement. This reduction ranges from 2.25% to 2.75% per annum for loans tied to SOFR and from 1.25% to 1.75% per annum for those reliant on the alternate base rate. These adjustments are contingent upon the consolidated first lien leverage ratio of the company.

While this summary provides an overview of the changes, the full details of the Amendment can be found in the Amended Credit Agreement included as Exhibit 10.1 in the current report on Form 8-K.

The recent agreement falls under Item 1.01 of the SEC filing, defining it as an entry into a material definitive agreement. It has also created a direct financial obligation under Item 2.03 of the filing.

Ceridian HCM Holding Inc.’s move to restructure its credit agreement reflects the company’s strategy to manage its financial obligations efficiently and optimize its capital structure for future growth and profitability.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ceridian HCM’s 8K filing here.

About Ceridian HCM

Ceridian HCM Holding Inc, together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market.