Dealertrack plans $825 million credit facility for Dealer.com purchase

By Sara Rosenberg

New York, Dec. 20 - Dealertrack Technologies has received a commitment for an $825 million senior secured credit facility to help fund its acquisition of Dealer.com, according to an 8-K filed with the Securities and Exchange Commission on Friday.

JPMorgan Chase Bank, Bank of America, Barclays and Wells Fargo Bank are leading the debt.

The facility consists of a $200 million revolver and a $625 million seven-year term loan.

Under the agreement, Dealer.com is being purchased for about 8.7 million shares of Dealertrack's common stock and $620 million in cash.

Closing is expected in the first quarter of 2014, subject to regulatory approval.

Net debt to LTM EBITDA is expected to be between 4.4 times to 4.6 times, a company presentation added.

Dealertrack is a Lake Success, N.Y.-based provider of web-based software solutions and services to the automotive industry. Dealer.com is a Burlington, Vt.-based provider of marketing and operations software and services for the automotive industry.

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