Imperial Dade revises term loan commitment deadline; CDK price guidance surfaces

By Sara Rosenberg

New York, June 2 – In the primary market on Thursday, Imperial Dade (BCPE Empire Holdings Inc.) moved up the commitment deadline for its incremental first-lien term loan.

Furthermore, CDK Global Inc. released price talk on its first-lien term loan in connection with its lender call.

Imperial Dade accelerated

Imperial Dade changed the commitment deadline for its non-fungible $650 million incremental first-lien term loan (B3/B-) due June 11, 2026 to noon ET on Tuesday from 5 p.m. ET on June 9, a market source said.

Talk on the term loan is SOFR+10 basis points CSA plus 462.5 bps with a 0.5% floor, an original issue discount of 95 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays, BMO Capital Markets, Citizens, Stifel and Brinley Partners are leading the deal that will be used to repay revolver borrowings and help fund the acquisition of a 45% equity stake in the company by Advent International from Bain Capital Private Equity.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

CDK sets talk

CDK held its lender call at 11 a.m. ET on Thursday and, shortly before the call began, price talk on its $3.35 billion seven-year first-lien term loan (B1/B+) emerged at SOFR plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 95 to 96, a market source remarked.

The term loan has 101 soft call protection for six months.

The company’s $4 billion of credit facilities also include a $650 million revolver.

Commitments are due at 5 p.m. ET on June 14, the source added.

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 leading the deal.

CDK being acquired

CDK will use the new credit facilities to help fund its acquisition 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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