...December 3, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Dec. 3, 2024--S&P Global Ratings said today that its ratings on CDK Global II LLC (B+/Stable/--) are unchanged following the company's announcement that it will raise a fungible incremental $500 million first-lien term loan add-on. CDK intends to use the proceeds to reduce revolver borrowings, with the excess cash staying on the balance sheet for general corporate purposes. We do not anticipate shareholder remuneration with the additional funds and believe the company will focus on growth initiatives including potential acquisitions. Our `B+' issue-level rating and `3' recovery rating on the first-lien term loan are unchanged, though the recovery estimate is now 50% from 55% previously. Our ratings and outlook reflect our belief that CDK will maintain its solid market position, with over 100% net customer retention as of the third quarter of 2024. We expect EBITDA will strengthen on the roll-off...
