...NEW YORK (S&P Global Ratings) June 4, 2018--S&P Global Ratings today assigned its '##+' issue-level rating and '3' recovery rating to Hoffman Estates, Ill.-based auto dealer information technology (IT) solutions provider CDK Global Inc.'s proposed $500 million senior unsecured notes due 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. The company intends to use the proceeds from these notes for acquisitions and share repurchases. Pro forma for the debt issuance, we expect CDK's leverage to increase to the mid-3x area before declining to the low-3x area by the end of fiscal year 2019 on improving margins. The company continues to execute on its restructuring initiatives, which have expanded its EBITDA margins to the low-30% area for the quarter ended March 31, 2018, from the mid-20% area during the previous quarter. We expect that CDK's margins will expand to the mid-30% area over the next...
