CDK Global talks $755 million first-lien notes due 2029 at 8%-8¼%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Aug. 2 – CDK Global talked its $755 million offering of first-lien secured notes due June 15, 2029 (B2/B+) to yield 8% to 8¼%, according to market sources.

Official talk comes tight to early guidance in the low-to-mid 8% area.

Close of books was set for 11 a.m. ET on Wednesday, and the deal was set to price thereafter.

The issuing entities will be Central Parent LLC, CDK Global II LLC and CDK Financing Co., Inc.

Goldman Sachs & Co. LLC is the left bookrunner. UBS Securities LLC, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and SG Americas Securities LLC are the joint bookrunners.

The Hoffman Estates, Ill.-based automotive technology company plans to use the proceeds plus cash on hand to pay off its second-lien term loan facility.

The new Rule 144A and Regulation S notes will have the same maturity and call structure as the outstanding Central Parent Inc./Central Merger Sub Inc. (CDK Global, Inc.) 7¼% senior secured first-lien notes due June 15, 2029, becoming callable on June 15, 2025 at par plus 50% of the coupon.

The outstanding 7¼% notes were issued in June 2022, coming in support of Brookfield’s acquisition of CDK Global.

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