Dealertrack 1.5% notes now convertible into cash only following merger

By Angela McDaniels

Tacoma, Wash., Oct. 1 – Dealertrack Technologies, Inc.’s 1.5% senior convertible notes due 2017 are no longer convertible into the company’s common stock following the company’s acquisition by Cox Automotive, Inc. on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Instead, they are convertible into the right to receive an amount of cash that the holder would have received had the notes been converted immediately prior to the completion of the merger.

Cox paid $63.25 per share for Dealertrack, and the notes’ conversion ratio is 26.7618 shares per $1,000 principal amount, so noteholders are entitled to $1,692.68 per $1,000 principal amount of convertibles.

Dealertrack also terminated the convertible bond hedge and warrant transactions that it entered into in connection with the convertibles.

Lake Success, N.Y.-based Dealertrack provides software services to the automotive retail industry. Cox Automotive is an Atlanta-based provider of digital marketing, wholesale and e-commerce solutions across the automotive industry.

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