Block, Inc. 8-K

What Happened

• On January 14, 2026, Block, Inc. announced it entered into an Amended and Restated Revolving Credit Agreement with Goldman Sachs Bank USA as Administrative Agent and participating lenders. The amendment increases Block’s unsecured revolving loan facility from $775.0 million to $900.0 million and sets a maturity date of January 14, 2031 (subject to an earlier adjustment tied to certain note maturities and liquidity tests). As of the filing date, no borrowings or letters of credit were outstanding under the facility. Proceeds may be used for working capital and general corporate purposes.

Key Details

• Facility size: increased to $900.0 million (from $775.0 million).
• Maturity: January 14, 2031, unless adjusted earlier if Block’s liquidity would fall below $250.0 million 91 days before certain debt maturities.
• Pricing: Term SOFR loans = Term SOFR + 1.25%–1.75% (tied to total net leverage); Base rate loans = highest of prime, federal funds + 0.50%, or 1-month Term SOFR + 1.00% plus a margin of 0.25%–0.75% (also leverage-dependent).
• Covenants & defaults: includes a maximum total net leverage ratio (measured quarterly), customary affirmative and negative covenants (limits on incurrence of debt, liens, sale-leasebacks, investments and restricted payments), and customary events of default (including payment default, covenant breaches, bankruptcy, change of control).

Why It Matters

• The amended facility increases Block’s available liquidity by $125 million, providing a larger backstop for working capital and corporate needs without immediate borrowings.
• Interest costs will vary with market rates (Term SOFR or base rate) and Block’s leverage level—investors should watch leverage metrics that affect pricing and covenant headroom.
• The maturity contains a conditional feature that could accelerate the facility’s effective maturity if upcoming note maturities would leave pro forma liquidity under $250 million, which could affect refinancing timing and cash planning.