By Paul A. Harris
Portland, Ore., Aug. 2 – CDK Global priced a $755 million issue of 8% first-lien secured notes due June 15, 2029 (B2/B+) at par to yield 8.003% on Wednesday, according to market sources.
The yield came tight to the 8% to 8¼% yield talk. Early guidance was in the low-to-mid 8% area.
The new CDK 8% notes were trading at par ½ bid, par ¾ offered heading into Wednesday’s close, a trader said, adding that the deal was heard to be playing to decent or better demand.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were UBS Securities LLC, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and SG Americas Securities LLC.
The notes were sold via issuers Central Parent LLC, CDK Global II LLC and CDK Financing Co., Inc.
The Hoffman Estates, Ill.-based automotive technology company plans to use the proceeds plus cash on hand to pay off its second-lien term loan facility.
The new 8% notes come with the same maturity and call structure as the outstanding Central Parent Inc./Central Merger Sub Inc. (CDK Global, Inc.) 7¼% senior secured first-lien notes due June 15, 2029. The outstanding 7¼% notes were issued in June 2022, coming in support of Brookfield’s acquisition of CDK Global.
| Issuers: | Central Parent LLC, CDK Global II LLC and CDK Financing Co., Inc.
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| Amount: | $755 million
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| Issue: | First-lien secured notes
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| Maturity: | June 15, 2029
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | UBS Securities LLC, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and SG Americas Securities LLC
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8.003%
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| Spread: | 377 bps
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| First call: | June 15, 2025 at 104
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| Trade date: | Aug. 2
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| Settlement date: | Aug. 9
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| Ratings: | Moody’s: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 8% to 8¼%
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| Marketing: | Roadshows
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