Cazoo Noteholders Voluntarily Extend Lock-Up Period

Rhea-AI Summary

Cazoo Group Ltd (NYSE: CZOO), a leading UK online car retailer, announced that 96% of its $630 million Convertible Senior Notes due 2027 holders have voluntarily extended their lock-up agreements. This extension, from November 6, 2022, to September 30, 2023, indicates strong support from investors. CEO Alex Chesterman highlighted Cazoo's growth, having sold over 100,000 vehicles online in under three years, and aims to capture a 5% share of the £100 billion UK used car market, demonstrating confidence in achieving profitability.

Positive

• 96% of $630 million Convertible Notes holders extended lock-up agreements, reflecting strong investor confidence.
• Cazoo sold over 100,000 vehicles online within three years, marking significant market penetration.
• Company aims for a 5% share in the £100 billion UK used car market, indicating growth potential.

Negative

• None.

LONDON & NEW YORK--(BUSINESS WIRE)-- Cazoo Group Ltd (NYSE: CZOO) (“Cazoo” or the “Company”), the UK’s leading online car retailer, which makes buying and selling a car as simple as ordering any other product online, today announces that holders (“Noteholders”) of 96% of its $630 million of 2.00% Convertible Senior Notes due 2027 (the “Convertible Notes”) have voluntarily elected to enter into extensions of their lock-up agreements with the Company as a sign of their continued support of the business.

Cazoo Single Car Transporter Line Up (Photo: Business Wire)

Pursuant to the voluntary lock-up agreement, Noteholders have extended the original lock-up period, which was agreed to at the time of issuance of the Convertible Notes, from November 6, 2022 to September 30, 2023.

Alex Chesterman, Founder & CEO of Cazoo said: “We believe that the voluntary extension of the lock-up period by our Noteholders demonstrates their continued commitment to and confidence in the Company. In under 3 years since our launch, we have become the largest independent used car retailer in the UK, having now sold over 100,000 vehicles entirely online. We continue to grow our market share and are confident in our ability to capture a 5% or greater share of the £100bn UK used car market and achieve significant profitability while maintaining our market leading consumer proposition. We are pleased that our Noteholders share our confidence in the opportunity ahead and have signalled their continued support through this voluntary lock-up extension.”

About Cazoo - www.cazoo.co.uk

Cazoo is the UK’s largest independent used car retailer. Our mission is to transform the car buying and selling experience across the UK by providing better selection, value, transparency, convenience and peace of mind. Our aim is to make buying or selling a car no different to ordering any other product online, where consumers can simply and seamlessly buy, sell or finance a car entirely online for delivery or collection in as little as 72 hours. Cazoo was founded in 2018 by serial entrepreneur Alex Chesterman OBE and is a publicly traded company (NYSE: CZOO).

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of Cazoo may differ from its actual results and, consequently, you should not rely on forward-looking statements as predictions of future events. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (1) the implementation of and expected benefits from our business realignment plan, the winddown of operations in mainland Europe and other cost-saving initiatives; (2) realizing the benefits expected from the business combination (the “Business Combination”) with Ajax I; (3) achieving the expected revenue growth and effectively managing growth; (4) executing Cazoo’s growth strategy in the UK; (5) achieving and maintaining profitability in the future; (6) global inflation and cost increases for labor, fuel, materials and services; (7) geopolitical and macroeconomic conditions and their impact on prices for goods and services and on consumer discretionary spending; (8) having access to suitable and sufficient vehicle inventory for resale to customers and reconditioning and selling inventory expeditiously and efficiently; (9) availability of credit for vehicle financing and the affordability of interest rates; (10) increasing Cazoo’s service offerings and price optimization; (11) effectively promoting Cazoo’s brand and increasing brand awareness; (12) expanding Cazoo’s product offerings and introducing additional products and services; (13) enhancing future operating and financial results; (14) acquiring and integrating other companies; (15) acquiring and protecting intellectual property; (16) attracting, training and retaining key personnel; (17) complying with laws and regulations applicable to Cazoo’s business; (18) successfully deploying the proceeds from the Business Combination and the issuance of $630 million of convertible notes to an investor group led by Viking Global Investors; and (19) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Forward-Looking Statements” in the Reports on Form 6-K filed with the U.S. Securities and Exchange Commission (the “SEC”) by Cazoo Group Ltd on June 9, 2022 and September 8, 2022 and in subsequent filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the disclosure included in other documents filed by Cazoo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cazoo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Cazoo gives no assurance that it will achieve its expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005953/en/

Cazoo

Investor Relations:

Robert Berg, Director of Investor Relations and Corporate Finance, investors@cazoo.co.uk

ICR: cazoo@icrinc.com

Media:

Lawrence Hall, Group Communications Director, lawrence.hall@cazoo.co.uk

Brunswick: Chris Blundell/Simone Selzer +44 20 7404 5959 / cazoo@brunswickgroup.com

Source: Cazoo Group Ltd

FAQ

What does Cazoo's lock-up extension mean for investors?

The voluntary extension of the lock-up agreements by 96% of Convertible Notes holders signifies strong investor confidence in Cazoo's business prospects.

What are the key figures in Cazoo's recent press release?

Cazoo announced that 96% of holders of its $630 million Convertible Senior Notes due 2027 have extended their lock-up period from November 6, 2022, to September 30, 2023.

How many vehicles has Cazoo sold since its launch?

Cazoo has sold over 100,000 vehicles entirely online since its launch less than three years ago.

What market share is Cazoo targeting in the UK used car market?

Cazoo aims to capture a 5% share of the £100 billion UK used car market.

Who is the CEO of Cazoo?

The CEO of Cazoo is Alex Chesterman.