Carvana Co. Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Carvana Co. (NYSE: CVNA) has priced a private placement of $750 million in its 4.875% Senior Notes due 2029. This issuance aims to close around August 16, 2021, subject to customary conditions. The Notes will offer a 4.875% annual interest, payable semi-annually starting March 1, 2022, and will mature on September 1, 2029. Carvana will use the proceeds for general corporate purposes. The offering is limited to qualified institutional buyers and complies with specific regulations, ensuring that it remains exempt from registration under the Securities Act.

Positive

• Issuance of $750 million in Senior Notes enhances liquidity for operational flexibility.
• 4.875% interest rate is competitive, providing favorable financing terms.

Negative

• The Notes are subject to risks associated with bond market fluctuations.
• Restrictions on resale may limit liquidity for investors.

Carvana Co. (NYSE: CVNA), the leading e-commerce platform for buying and selling used cars, today announced it has priced the private placement of $750.0 million in aggregate principal amount of its 4.875% Senior Notes due 2029 (the “Notes”). The Notes will be issued under an indenture to be entered into upon the closing of the offering, which Carvana anticipates will take place on or about August 16, 2021, subject to customary closing conditions. Carvana intends to use the net proceeds from the offering for general corporate purposes.

The Notes will bear interest at a rate of 4.875% per year, payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2022. The Notes will mature on September 1, 2029, unless earlier redeemed or repurchased.

The Notes, which generally will be guaranteed on a senior unsecured basis by Carvana’s existing domestic subsidiaries, are being offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. Offers of the Notes are being made only by means of a private offering memorandum.

About Carvana Co.

Founded in 2012 and based in Phoenix, Carvana’s (NYSE: CVNA) mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 45,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana’s patented, automated Car Vending Machines.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current intentions, expectations or beliefs regarding the Notes offering and the anticipated use of the net proceeds therefrom. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning. Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

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FAQ

What is the amount of Senior Notes issued by Carvana (CVNA)?

Carvana has issued $750 million in Senior Notes.

What is the interest rate on Carvana's Senior Notes?

The Senior Notes bear an interest rate of 4.875%.

When will Carvana's Senior Notes mature?

The Senior Notes will mature on September 1, 2029.

What will Carvana use the proceeds from the Notes for?

Carvana intends to use the net proceeds for general corporate purposes.

Who can purchase the Senior Notes from Carvana?

The Senior Notes are being offered only to qualified institutional buyers.