...August 1, 2023 NEW YORK (S&P Global Ratings) Aug. 1, 2023--S&P Global Ratings today assigned its 'B+' issue-level rating and '3' recovery rating to Illinois-based software and technology solutions provider CDK Global II LLC's proposed $755 million senior secured notes. The recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. CDK plans to use the proceeds from these notes to fully pay down the outstanding $755 million balance on its second-lien term loan due 2030. While our 'B+' issue-level and '3' recovery ratings on CDK's existing first-lien debt facilities and $750 million senior secured notes are unchanged, we revised our rounded recovery estimate to 55% from 65% to reflect the increase in first-lien debt that would impair recovery prospects for secured creditors. We view the transaction as leverage neutral and believe it improves the company's liquidity and cash flows by reducing its interest expense since...
