- Published: April 2009
Bulletin: AutoTrader.com Inc. Ratings Unaffected By Acquisition Of VinSolutions May 11
- Published: May 2011
- Standard & Poors
CHICAGO (Standard & Poor's) May 20, 2011--Standard & Poor's Ratings Services said today that AutoTrader.com's recent announcement that it has agreed to acquire VinSolutions LLC will not affect its 'BB+' corporate credit rating and stable outlook on the company. We expect AutoTrader will increase its debt outstanding to fund the acquisition. We expect the transaction to close by mid-June. VinSolutions provides Internet-based platforms--including customer relations management (CRM), Internet lead management, and inventory control solutions--for auto dealers. VinSolutions will continue to operate as a stand-alone entity, and cost savings opportunities are expected to be minimal. Pro forma for recent transactions, we expect AutoTrader's lease-adjusted debt leverage to increase to the mid-4.0x area following the acquisition of VinSolutions. Still, we believe that...
Companies mentioned in this report are: AutoTrader.com, Inc.
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