Fitch rates Cox Enterprises loan BBB+

Fitch Ratings said it assigned a BBB+ rating to Cox Enterprises Inc.'s proposed $1.85 billion senior unsecured term loan facility due Dec. 31, 2017.

The outlook is stable.

Proceeds are to be used to fund a portion of the roughly $4.6 billion acquisition of Dealertrack Technologies, Inc. announced on June 15. The balance of the acquisition will be funded through an existing bank facility and a new $750 million common equity investment from BDT Capital Partners.

The deal is expected to close during the third quarter of 2015 subject to the receipt of certain regulatory approvals.

As of March 31, the company had $11.1 billion of total debt.

Fitch said the ratings incorporate its expectation that Cox Enterprises will focus on reducing leverage over the next 12 to 24 months and return to levels more in line with its current rating.

The Dealertrack acquisition is an affirmation of the company's growth strategy, which has recently focused more on Cox Enterprises’ Cox Automotive Group Inc. group, the agency said.

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