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DEBT AND FINANCING ARRANGEMENTS
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT AND FINANCING ARRANGEMENTS DEBT AND FINANCING ARRANGEMENTS
2024 Credit Facilities - Our primary financing arrangement is the 2024 Credit Facilities. The 2024 Credit Facilities is a $2.0 billion senior secured credit facilities, consisting of a $1.4 billion term loan (the “Term Loan”) and $600.0 million revolving credit facility (the “Revolving Credit Facility”).
The 2024 Credit Facilities matures on November 1, 2029. The Term Loan provides for scheduled annual principal amortization payments of 5% in the first two years following closing, 7.5% annually in the third and fourth year following closing and 10% in the fifth year following closing, with the balance due at maturity.
The 2024 Credit Facilities contains certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens or other encumbrances, making certain payments, investments, or to sell or otherwise dispose of a substantial portion of assets, or to merge or consolidate with an unaffiliated entity. The 2024 Credit Facilities also limits our ability to make dividend payments. Historically, we have not paid cash dividends on our common stock. Our Board of Directors has discretion over the payment and level of dividends on our common stock, subject to the limitations of the 2024 Credit Facilities and applicable law. The 2024 Credit Facilities contains a provision that, in the event of a defined change in control, the 2024 Credit Facilities may be terminated.
In addition, the 2024 Credit Facilities includes a financial covenant requiring that Total Net Leverage Ratio not exceed 5.00 to 1.00 initially, stepping down in increments to 3.75 to 1.00 during and after the seventh fiscal quarter after the closing (with a limited ability to temporarily increase in connection with material acquisitions commencing in the sixth fiscal quarter after the closing). The 2024 Credit Facilities also requires a Minimum Consolidated Interest Coverage Ratio of 3.00 to 1.00 and affirmative and negative covenants that are in each case generally similar to those contained in our previous amended and restated 2022 credit facility, but with increases to certain baskets and caps and certain other exceptions. As of June 30, 2026, we were in compliance with all covenants under the 2024 Credit Facilities.
The balance outstanding under the 2024 Credit Facilities at June 30, 2026 and December 31, 2025 was as follows (in thousands):
June 30, 2026December 31, 2025
Short-term debt
Current portion, Term Loan
$87,500 $70,000 
Current portion debt issuance costs, Term Loan(3,525)(3,628)
Total short-term debt$83,975 $66,372 
Long-term debt
Revolver Facility$178,500 $142,400 
Debt issuance costs, Revolver(5,648)(6,495)
Long-term portion, Term Loan
1,207,500 1,260,000 
Long-term portion Debt Issuance Costs, Term Loan
(4,618)(6,353)
Total long-term debt$1,375,734 $1,389,552 
The blended effective interest rates under the 2024 Credit Facilities, including the impact of interest rate swaps associated with those credit facilities, for the six months ended June 30, 2026 and 2025 were as follows:
Six Months Ended June 30,
20262025
Weighted average rates6.06%6.67%
Range of effective rates
3.54% - 6.84%
3.18% - 8.75%
We had approximately $418.3 million of available funds under the 2024 Credit Facilities at June 30, 2026, based on the terms of the commitment. Available funds under the 2024 Credit Facilities are based on a multiple of earnings before interest, taxes, depreciation and amortization as defined in the 2024 Credit Facilities, and are reduced by letters of credit, other indebtedness and outstanding borrowings under the 2024 Credit Facilities. Under the 2024 Credit Facilities, loans are charged an interest rate consisting of a base rate or term SOFR rate plus an applicable margin, letters of credit are charged based on the same applicable margin, and a commitment fee is charged on the unused portion of the 2024 Credit Facilities.
Refer to Note 10, Debt and Financing Arrangements, to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025, as amended, for further discussion on the 2024 Credit Facilities.
Other Line of Credit - We have an unsecured $20.0 million line of credit by and among CBIZ Benefits and Insurance, Inc. and Huntington National Bank ("line of credit"). We utilize this line of credit to support our short-term funding requirements of payroll client fund obligations due to the investment of client funds, rather than liquidating client funds that have already been invested in available-for-sale securities. The line of credit did not have a balance outstanding at June 30, 2026 or December 31, 2025. The line of credit was renewed in July 2026 and will now terminate on July 30, 2027.
Interest Expense - Interest expense, including amortization of deferred financing costs, commitment fees, line of credit fees, and other applicable bank charges, for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Credit facilities$24,309 $27,862 $48,224 $53,018 
Other26 5 27 5 
Total$24,335 $27,867 $48,251 $53,023