Dealertrack sets spread on $575 million term B at Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 24 - Dealertrack Technologies Inc. firmed pricing on its $575 million seven-year term loan B at Libor plus 275 basis points, the tight end of the Libor plus 275 bps to 300 bps talk, and added a step-down to Libor plus 250 bps based on leverage, according to a market source.

Also, the Libor floor on the term loan was changed to 0.75% from 1% and the original issue discount was revised to 99¾ from 991/2, the source said.

The term loan B still has 101 soft call protection for six months.

The company's $775 million senior secured credit facility (Ba2/BB-) also includes a $200 million revolver.

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

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.

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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