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ROSELAND, N.J. - ADP (NASDAQ:ADP), a global technology company offering cloud-based human capital management solutions, has priced a public offering of senior notes valued at $1 billion with a 4.75% interest rate, maturing in 2032. The company, currently valued at $123.1 billion and trading near its 52-week high of $322.84, announced the pricing yesterday and expects to close the transaction on or about May 8, 2025. According to InvestingPro data, ADP operates with a moderate level of debt, maintaining a healthy current ratio of 1.02.
The proceeds from the senior notes offering are intended to refinance existing debt, with any remaining funds allocated for general corporate purposes. This financial move is part of ADP’s broader strategy to manage its capital structure and meet its financial obligations. The company has demonstrated strong financial management, with InvestingPro analysis showing an impressive track record of maintaining dividend payments for 52 consecutive years, including 26 years of consecutive dividend increases.
Investors interested in the offering can access the prospectus and related documents filed with the Securities and Exchange Commission (SEC) for free by visiting the SEC’s EDGAR database online. Additionally, the prospectus and preliminary prospectus supplement are available upon request from the underwriters, including BofA Securities, Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.
It is important to note that this press release does not serve as an offer to sell or a solicitation of an offer to buy the debt securities or any other securities. The sale of these securities will not occur in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
ADP emphasizes that the statements in the press release regarding the offering are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. These include factors such as market conditions, the company’s ability to attract and retain clients, and legislative or regulatory changes, among others outlined in the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024. For deeper insights into ADP’s financial health and future prospects, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The information in this article is based on a press release statement from ADP.
In other recent news, Automatic Data Processing Inc (ADP) reported its fiscal third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $3.06, against the projected $2.97. The company’s revenue also exceeded forecasts, reaching $5.55 billion compared to the anticipated $5.49 billion. ADP revised its full-year guidance upward, now expecting revenue growth at the high end of the 6-7% range. Additionally, ADP announced a CFO transition, with Peter Hadley set to succeed Don McGuire as CFO effective July 1, 2025. The company highlighted the integration of its Lyric HCM Platform and Workforce Software as key drivers of innovation and client acquisition. ADP also strengthened its global payroll capabilities with the acquisition of PEI in Mexico. Despite these positive developments, the company noted some softness in international bookings due to macroeconomic uncertainties. Nonetheless, ADP remains optimistic about its strategic priorities and the strong pipelines in place for future growth.
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