Carvana Issues Notes, Stock Featured

By Staff Writer May 24, 2019

Carvana Co. has priced the private placement of an additional $250 million aggregate principal amount of its 8.875 percent senior notes due 2023.

The new notes priced at 100.500 percent of their principal amount, plus accrued and unpaid interest from April 1, 2019, representing a yield to call of 8.693 percent. The new notes will be issued as additional notes under the contract governing the outstanding $350 million of senior notes that were issued on Sept. 21, 2018.

Carvana anticipates that the closing of the offering of the new notes will take place on or about May 24, subject to customary closing conditions.

Carvana also announced the upsize and pricing of its concurrent underwritten public offering of 4.2 million shares of its Class A common stock at a public offering price of $65 per share. Carvana granted the underwriters a 30-day option to purchase up to an additional 630,000 shares of its Class A common stock.

The public offering was upsized from the previously announced offering size of 3.5 million shares of Class A common stock.

Carvana intends to use the net proceeds from the new notes offering and the public offering for general corporate purposes. Carvana may use the net proceeds from these offerings to partially repay borrowings under its floor plan facility until it identifies other specific uses.



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Last modified on Saturday, 08 June 2019 18:33

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