CDK Global increases first-lien term loan amount to $3.6 billion

By Sara Rosenberg

New York, June 7 – CDK Global Inc. upsized its seven-year first-lien term loan to $3.6 billion from $3.35 billion, according to a market source.

Talk on the term loan remained at SOFR plus 475 basis points to 500 bps with a 0.5% floor, an original issue discount of 95 to 96 and 101 soft call protection for six months.

The company’s now $4.25 billion of credit facilities, up from $4 billion, also include a $650 million revolver.

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.

Commitments continue to be due at noon ET on Thursday, the source continued.

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.

The company is also getting $750 million of senior secured first-lien notes for the transaction, as opposed to $1 billion of other first-lien secured debt, the source added.

Closing is expected in the third quarter, subject to customary conditions.

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

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