By Aleesia Forni
Virginia Beach, Oct. 8 – CDK Global Inc. priced $750 million of senior notes (Baa3/BBB-/) in tranches due 2019 and 2024 on Wednesday, according to a market source and an 8-K filed with the Securities and Exchange Commission.
The sale included $250 million of 3.3% notes due 2019 priced at par with a spread of Treasuries plus 173 basis points.
A second tranche was $500 million of 4.5% 10-year notes sold at par, or Treasuries plus 216.3 bps.
The notes were sold via Rule 144A and Regulation S.
The bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch and Citigroup Global Markets Inc.
Proceeds from the sale will be used, together with cash on hand, to repay all outstanding borrowings under the company’s short-term $750 million senior unsecured bridge loan facility.
CDK is an integrated information technology and digital marketing company based in Hoffman Estates, Ill.
| Issuer: | CDK Global Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc.
|
| Trade date: | Oct. 8
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2019
|
| Coupon: | 3.3%
|
| Price: | Par
|
| Yield: | 3.3%
|
| Spread: | Treasuries plus 173 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2024
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Spread: | Treasuries plus 216.3 bps
|
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