Dealertrack to launch $825 million credit facility on Thursday

By Sara Rosenberg

New York, Feb. 3 - Dealertrack Technologies, Inc. set a bank meeting for Thursday to launch its proposed $825 million senior secured credit facility, according to a market source.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC are leading the debt.

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

Proceeds will be used to help fund the acquisition of Dealer.com for about 8.7 million shares of Dealertrack's common stock and $620 million in cash.

Closing is expected this quarter, subject to regulatory approval.

Net debt to LTM EBITDA is expected to be between 4.4 times and 4.6 times.

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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