Workday, Inc. — Form 8-K Summary
Reporting date: October 1, 2026. This filing reports a new revolving credit agreement and termination/replacement of Workday’s prior facility; it does not report quarterly operating or financial results.
Business context and liquidity
Workday entered into a five-year revolving credit facility with aggregate commitments of $1.5 billion, replacing its April 6, 2022 facility of $1.0 billion. As of the closing date, Workday had no revolving loans outstanding under the new facility. The facility supports borrowing, repayment, and reborrowing through October 1, 2031, when outstanding amounts are due. Workday may request up to two one-year maturity extensions, subject to lender approval.
Key terms and financial obligations
- Loans may be denominated in U.S. dollars, euros, sterling, Canadian dollars, and approved alternative currencies. Alternative-currency loans are capped at an aggregate equivalent of $525 million.
- Interest margins vary based on Workday’s consolidated leverage ratio or, if elected, its senior unsecured debt rating. SOFR-based margins range from 0.75% to 1.50%; base-rate margins range from 0.00% to 0.50%. Swing-line and letter-of-credit pricing also varies with the selected pricing basis and applicable metric.
- Commitment fees on unused amounts range from 0.07% to 0.20% per year, depending on the pricing basis and applicable metric. Other customary administrative-agent fees apply.
- Workday may prepay loans and permanently reduce commitments without penalty or premium. During a payment event of default, applicable interest rates increase by 2.0 percentage points per year.
- The quarterly financial covenant limits the maximum leverage ratio to 3.50 to 1.00, with an optional increase to 4.50 to 1.00 for a specified period after a qualifying acquisition.
Changes, risks, and contingencies
The new facility increases revolving commitments by $500 million compared with the prior facility. The filing provides no drawn balance, cash-flow, earnings, revenue, margin, or other operating-performance figures; therefore, those metrics and any effect of the new terms on future borrowing costs are not clear from this filing.
The agreement includes customary covenants restricting, among other matters, liens, indebtedness, and certain mergers, subject to exceptions. Events of default include nonpayment, covenant violations, certain cross-defaults, bankruptcy or insolvency, material judgments, change of control, and specified ERISA events; a default could accelerate amounts owed. The filing does not state whether Workday currently has covenant headroom or anticipate borrowing under the facility. Some lenders and their affiliates also provide Workday financial and banking services and may receive compensation.
Important facts to verify
- Review Exhibit 10.1 for the full agreement, including definitions, exceptions, extension mechanics, and detailed pricing grids.
- Confirm future outstanding borrowings, facility usage, and applicable interest and commitment-fee rates in subsequent filings.
- Monitor Workday’s leverage ratio, covenant compliance, and any qualifying acquisitions that could affect the leverage limit.
- Check subsequent disclosures for amendments, maturity extensions, defaults, or changes in the facility’s availability.