Automatic Data Processing (ADP) Is Up 7.2% After Expanding US$9.2 Billion Credit Lines Has The Bull Case Changed?

In late June, Automatic Data Processing, Inc. entered into new revolving credit facilities totaling US$9.20 billion, including a US$5.70 billion 364-day agreement and a US$3.50 billion five-year agreement, replacing its prior arrangements and providing committed multi-currency funding options for general corporate purposes.

The scale and structure of these facilities, including an accordion feature and term-out option, materially increase ADP’s financial flexibility for working capital...