CDK Global obtains $600 million in term loans, $750 million revolver

By Wendy Van Sickle

Columbus, Ohio, Aug. 23 – CDK Global, Inc. entered into two credit agreements on Aug. 17 that provide for $600 million of term loans in two tranches and a $750 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

For each credit agreement, Bank of America Merrill Lynch, JPMorgan Chase Bank, NA, MUFG Bank Ltd., U.S. Bank NA and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners with Bank of America, NA as administrative agent and JPMorgan Chase, MUFG, U.S. Bank and Wells Fargo Bank, NA as syndication agents.

Term loan credit agreement

The $600 million of term loans includes a $300 million three-year term loan and a $300 million five-year term loan.

The three-year term loan will be repayable in full at maturity. The five-year term loan will amortize in equal quarterly installments of 1.25% with the balance due at maturity.

The interest rate is based on Libor plus a margin that varies depending on the company’s debt ratings and ranges from 112.5 basis points to 225 bps for the three-year term loan and 125 bps to 237.5 bps for the five-year loan.

The proceeds of the term loans were used to repay amounts outstanding under the company’s existing credit agreements – entered in 2014, 2015 and 2016 – and for general corporate purposes.

At closing, $203,594,457.46, $219,145,633.68 and $370,669,186.11 was repaid under the 2014, 2015 and 2016 credit agreements, respectively.

Revolving credit facility

The $750 million revolver has a $100 million sublimit for loans in euros, pounds sterling and other currencies, as approved by the lenders.

Borrowings bear interest at Libor plus a margin that ranges from 125 bps to 237.5 bps, and the unused-commitment fee ranges from 15 bps to 35 bps, both depending on ratings.

The credit agreement will mature on the fifth anniversary of closing, subject to up to two one-year extension options.

Proceeds may be used for general corporate purposes.

CDK is an integrated information technology and digital marketing company based in Hoffman Estates, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.