What happened
Workday, Inc. (NASDAQ: WDAY) entered a new revolving credit agreement on October 1, 2026. The deal provides a $1.5 billion facility and replaces Workday's prior April 6, 2022 revolver, which had $1.0 billion of aggregate principal capacity.
Workday said it had no outstanding revolving loans at closing. Loans may be borrowed, repaid and reborrowed until October 1, 2031. Workday can also ask for up to two one-year extensions during the term. The facility allows loans in U.S. Dollars, Euros, Sterling and Canadian Dollars, plus other approved currencies.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Revolving credit facility | $1.5 billion | from $1.0 billion, + $500 million | SEC 8-K |
| Alternative Currency Sublimit | $525 million | Credit Agreement | |
| Outstanding revolving loans | $0 | SEC 8-K | |
| Maximum leverage ratio | 3.50 to 1.00 | Credit Agreement | |
| Temporary leverage step-up | 4.50 to 1.00 | Credit Agreement |
Why it matters
The revolver is $500 million larger than the prior $1.0 billion line, a 50% increase. That gives Workday more committed liquidity under one facility. OptimistFi's case is that Workday can become the trusted enterprise AI agent layer, and this filing does not change that operating view by itself.
The filing also sets a leverage covenant. Workday must stay at or below 3.50 to 1.00 on a quarterly test. The agreement includes a temporary step-up to 4.50 to 1.00 after a Qualified Acquisition. Loans in Alternative Currencies may not exceed $525 million.
The commitment fee on unused revolving commitments ranges from 0.080% to 0.200% per year under the leverage grid. It ranges from 0.070% to 0.150% per year under the ratings grid if Workday elects it. Revolving loans can price off a base rate or SOFR, with margins tied to leverage or, if elected, Workday's debt rating.
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What's next
Workday can ask, no more than two times during the term, for lenders to extend the maturity date for the revolving loans for one year. The next dated check is the compliance certificate for the fiscal quarter ending October 31, 2026. That filing will set the pricing grid and show whether Workday stays inside the leverage covenant.
If Workday stays within the test, the facility stays available on the quoted terms. If it breaches the covenant, lenders could accelerate the obligations under the agreement. The revolver otherwise matures on October 1, 2031.
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Sources
- SEC 8-K — Current report filed October 1, 2026.
- Exhibit 10.1 Credit Agreement — Credit Agreement dated October 1, 2026.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
