The new $1.5B facility significantly increases Workday's liquidity buffer and extends maturity to 2031. Monitor future 10-Qs for any drawdowns, which would signal capital allocation priorities (e.g., M&A or buybacks). The step-up to 4.50x leverage post-qualified acquisition suggests capacity for larger deals.
Price Chart
Executive Summary
Workday entered into a new $1.5 billion revolving credit facility, replacing its prior $1.0 billion facility, with a maturity date of October 1, 2031. The facility was undrawn at closing and provides enhanced liquidity with improved pricing and terms, including a leverage-based financial covenant and the ability to step up to 4.50x leverage following a qualified acquisition.
Key Financial Metrics
Key Facts
- Workday entered into a new $1.5 billion revolving credit facility on October 1, 2026, replacing its prior $1.0 billion facility.
- The facility matures on October 1, 2031, with two possible one-year extension options.
- As of October 1, 2026, Workday had no outstanding revolving loans under the new credit agreement.
- The facility includes a financial covenant requiring a maximum consolidated leverage ratio of 3.50x, step-up to 4.50x following a qualified acquisition.
- Interest rates are based on SOFR plus a margin of 0.875% to 1.500% (leverage-based) or 0.750% to 1.250% (ratings-based).
- The facility includes an Alternative Currency Sublimit of $525 million and a Letter of Credit Sublimit of $75 million.
Financial Impact
Workday upsized its revolving credit facility from $1.0 billion to $1.5 billion, with no amounts drawn at closing. The facility provides enhanced liquidity and financial flexibility.
Risk Factors
- Future draws on the facility would increase leverage and interest expense.
- The financial covenant (max 3.50x leverage, step-up to 4.50x) could constrain flexibility if earnings decline or if a large acquisition is funded with debt.
- Cross-default provisions could trigger acceleration if other indebtedness triggers an event of default.
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-112898 |
| Document: tm2626731d2_8k.htm | 0001104659-26-112898 |
| Document: 0001104659-26-112898-index-headers.html | 0001104659-26-112898 |
| Document: 0001104659-26-112898-index.html | 0001104659-26-112898 |
| Document: 0001104659-26-112898.txt | 0001104659-26-112898 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $210.03 | awaiting T+1 | — | $208.50 (−0.73%) |
Oct 22, 2026 4d ago | 424B5 | $209.99 $208.50 | ▼ −0.71% | ▼ −1.42% | $208.50 (−0.71%) |
Oct 21, 2026 5d ago | Press Release | $209.99 $209.99 | · 0.00% | ▲ +0.52% | $208.50 (−0.71%) |
Oct 21, 2026 5d ago | 424B5 | $202.96 $209.99 | ▲ +3.46% | ▲ +4.64% | $208.50 (+2.73%) |
Oct 20, 2026 6d ago | Institutional Cluster | $202.96 $209.99 | ▲ +3.46% | ▲ +4.64% | $208.50 (+2.73%) |
Oct 14, 2026 12d ago | Insider Cluster | $196.63 $190.81 | ▲ +2.96% | ▲ +1.85% | $208.50 (−6.04%) |
Oct 13, 2026 13d ago | 8-K | $186.02 $188.77 | ▲ +1.48% | ▲ +2.56% | $208.50 (+12.08%) |
Oct 13, 2026 13d ago | Press Release | $186.02 $188.77 | ▲ +1.48% | ▲ +2.56% | $208.50 (+12.08%) |
Oct 9, 2026 17d ago | 144 | $188.25 $186.02 | ▼ −1.18% | ▼ −1.17% | $208.50 (+10.76%) |
Oct 6, 2026 20d ago | 144 | $184.26 $187.81 | ▲ +1.93% | ▲ +2.35% | $208.50 (+13.16%) |
US Market Status
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