Moody's gives Dealertrack facilities Ba2

Moody's Investors Service said it assigned a Ba3 corporate family rating and a Ba3-PD probability of default rating to Dealertrack Technologies, Inc.

The agency also assigned Ba2, LGD3-38% rating to the company's $775 million first-lien senior secured credit facilities, consisting of a $200 million revolving credit and a $575 million term loan.

As part of the rating action, Moody's assigned an SGL-2 rating indicating good liquidity.

The term loan borrowings, cash on hand, in conjunction with about $400 million in new stock issuance will be used to fund the $1 billion purchase of Dealer.com.

The outlook is stable.

Moody's said the Ba2 rating on the senior secured term loan facility reflects the instruments' position in the capital structure relative to the unrated $200 million convertible note, trade payables and pension and operating lease obligations.

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