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Long-Term Financing | 12 Months Ended
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May 31, 2020
Financing [Abstract] |
Long-Term Financing | Note O — Long-term Financing On March 13, 2019, the Company and its Paychex of New York LLC (“PoNY”) subsidiary completed the private placement of Senior Notes, Series A in an aggregate principal amount of $400.0 million due on March 13, 2026, and Senior Notes, Series B in an aggregate principal amount of $400.0 million due on March 13, 2029 (collectively the “Notes”), pursuant to its Note Purchase and Guarantee Agreement (the “Agreement”) among the Company, PoNY, and the respective purchasers. Proceeds from the Notes were used to pay off $800.0 million in short-term borrowings under the Company’s JPM credit facilities used to temporarily finance the acquisition of Oasis. Long-term debt, at amortized cost, consisted of the following:
|  | May 31,
In millions |  | 2020 |  | 2019
Senior Notes, Series A |  | $ | 400.0 |  | $ | 400.0
Senior Notes, Series B |  |  | 400.0 |  |  | 400.0
Total long-term borrowings |  |  | 800.0 |  |  | 800.0
Less: Debt issuance costs, net of accumulated amortization |  |  | (3.2) |  |  | (3.6)
Long-term borrowings, net of debt issuance costs |  | $ | 796.8 |  | $ | 796.4
Certain information related to the Senior Notes for fiscal 2020 and fiscal 2019 are as follows:
|  |  | Senior Notes | Senior Notes
|  |  | Series A | Series B
Stated interest rate |  |  | 4.07% | 4.25%
Effective interest rate |  |  | 4.16% | 4.32%
Interest rate type |  |  | Fixed | Fixed
Interest payment dates |  |  | Semi-annual, in arrears | Semi-annual, in arrears
Principal payment dates |  |  | March 13, 2026 | March 13, 2029
Note type |  |  | Unsecured | Unsecured
The effective interest rates for each note series includes the interest on the note and amortization of debt issuance costs. Payment of all amounts due with respect to the Notes and performance under the Agreement is guaranteed by the Company, PoNY and certain other subsidiaries of the Company. The Company may, at its option, prepay at any time all, or any part of, the Notes, subject to certain conditions as described in the Agreement. The Agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of May 31, 2020.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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