Note M —   Short-term Financing



The Company maintains credit facilities, letters of credit, and lines of credit as part of its normal and recurring business operations.



Credit Facilities:  The Company maintains three committed, unsecured credit facilities, as follows:













For all credit facilities, obligations under any facility are guaranteed by the Company and certain of its subsidiaries and will bear interest at competitive rates based on options provided to the borrower.  Upon the expiration date, any borrowings outstanding will mature and be payable on such date.



JPM $1 Billion Credit Facility: There were no borrowings outstanding under this credit facility as of May 31, 2018 or May 31, 2017.  Details of borrowings under this credit facility during fiscal 2018 and fiscal 2017 are as follows:









The Company typically borrows on an overnight basis.  In addition to overnight borrowings, the Company also borrowed: 





Subsequent to May 31, 2018, the Company borrowed two times, on an overnight basis, $171.8 million on a weighted-average basis under this line.



JPM $500 Million Credit Facility:  There were no borrowings outstanding under this credit facility as of May 31, 2018.  Details of borrowings under this credit facility during fiscal 2018 is as follows:







In addition to overnight borrowings, during fiscal 2018, the Company borrowed $300.0 million for seven days and $75.0 million for 30 days at weighted average LIBOR-based interest rates of 2.13% and 2.19%, respectively.  Subsequent to May 31, 2018, the Company borrowed three times, on an overnight basis, $103.5 million on a weighted-average basis under this line.



PNC $150 Million Credit Facility:  There were no borrowings outstanding under this credit facility as of May 31, 2018 or May 31, 2017.  Details of borrowings under this credit facility during fiscal 2018 and fiscal 2017 are as follows:







Subsequent to May 31, 2018, Paychex Advance borrowed approximately $56.8 million under this line, which remains outstanding as of the date of this report.

All of the Company’s credit facilities contain various financial and operational covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of May 31, 2018.



Certain lenders under these credit facilities, and their respective affiliates, have performed, and may in the future perform for the Company, various commercial banking, investment banking, underwriting, and other financial advisory services, for which they have received, and will continue to receive in the future, customary fees and expenses.

Letters of credit: The Company had irrevocable standby letters of credit outstanding totaling $56.8 million and $47.3 million as of May 31, 2018 and 2017, respectively, required to secure commitments for certain insurance policies. The letters of credit expire at various dates between July 2018 and May 2019. No amounts were outstanding on these letters of credit during fiscal 2018 or fiscal 2017, or as of May 31, 2018 and May 31, 2017.  Subsequent to May 31, 2018,  the letter of credit expiring in July 2018 was renewed through July 2019, and the total amount available under the letters of credit was increased $4.1 million to $60.9 million.

Lines of credit: Effective August 17, 2017, the Company terminated four uncommitted, secured, short-term lines of credit totaling $900.0 million.  The lines of credit were available to the Company at market rates of interest and were primarily used to meet short-term funding requirements related to deposit account overdrafts and client fund obligations arising from electronic payment transactions made on behalf of our clients in the ordinary course of business.  There were no amounts outstanding under these lines of credit during fiscal 2018 or fiscal 2017, or as of May 31, 2018 and May 31, 2017.  The Company does not have any other open lines of credit as of the date of this report.