LAKE SUCCESS, N.Y. — DealerTrack Holdings Inc. today announced that it has successfully completed a four-year, $125 million revolving secured credit facility which will be used for future acquisitions and general corporate purposes.
The credit facility, which includes a syndicate of seven banks led by J.P. Morgan, includes an accordion feature that provides for expansion of the facility for an additional $100 million. The facility matures in April 2015 and bears an interest rate between LIBOR plus 225 basis points and LIBOR plus 275 basis points per annum, based on a consolidated leverage ratio as defined in the agreement.
"We are very pleased to finalize this credit facility. We expect this facility to help promote our growth initiatives as it is primarily intended for acquisitions. We also appreciate the substantial response and support of our lenders," Eric D. Jacobs, chief financial and administrative officer of DealerTrack.
Additional details regarding the credit facility will be included in a Form 8-K to be filed with the United States Securities and Exchange Commission.