U.S. auto dealer IT solutions provider CDK Global Inc. plans to issue $500 million in 10-year senior unsecured notes to fund share buybacks and for general corporate purposes. We are affirming our 'BB+' corporate credit rating on CDK. At the same time, we are assigning our 'BB+' issue-level and '3' recovery ratings to the new notes. The outlook is stable, reflecting CDK's market leadership position in the auto dealer IT market and the company's improving EBITDA margins under its restructuring program. While we expect that the company will maintain net leverage at the high end of its stated target of 2.5x-3x over the next year with aggressive share buybacks, we project that CDK's recurring revenue model and solid free cash
