CDK readies launch of $4 billion credit facilities for Thursday

By Sara Rosenberg

New York, June 1 – CDK Global Inc. is scheduled to hold a lender call at 11 a.m. ET on Thursday to launch $4 billion of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Inc., CIBC, Bank of Nova Scotia, Credit Agricole, MUFG, Societe Generale and Golub are the joint lead arrangers on the deal.

The facilities consist of a $650 million revolver and a $3.35 billion seven-year first-lien term loan, the source said.

The term loan has a 0.5% floor and 101 soft call protection for six months.

Proceeds will be used to help fund the buyout of the company by Brookfield Business Partners for $54.87 per share. The transaction has a total enterprise value of $8.3 billion.

Closing is expected in the third quarter, subject to the tender of a majority of CDK’s outstanding shares, the expiration or termination of the antitrust waiting period and other customary conditions.

CDK is a Hoffman Estates, Ill.-based automotive retail technology company.

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