Carvana Co. Announces $250.0 Million Private Offering of Senior Notes

TEMPE, Ariz.–(BUSINESS WIRE)–Carvana Co. (NYSE: CVNA), a leading e-commerce platform for buying and
selling used cars, today announced it is planning to offer, subject to
market conditions and other factors, $250.0 million of additional 8.875%
senior notes due 2023 (the “new notes”) in a private offering. The new
notes will be issued as additional notes under the indenture governing
the outstanding $350.0 million in aggregate principal amount of
Carvana’s 8.875% senior notes due 2023 that were issued on September 21,
2018 (the “existing notes”).

Concurrently with the offering of new notes, Carvana intends to offer
3,500,000 shares of Carvana’s Class A common stock in an underwritten
public offering, subject to market conditions. Carvana also expects to
grant the underwriters a 30-day option to purchase up to an additional
525,000 shares of Carvana’s Class A common stock. The new notes offering
is not contingent upon the concurrent public offering of Class A common
stock, and the concurrent public offering of Class A common stock is not
contingent upon the new notes offering.

Carvana intends to use the net proceeds from the new notes offering and
the public offering of Class A common stock 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.

The new notes will not be registered under the Securities Act of 1933,
as amended (“Securities Act”), or the securities laws of any other
jurisdiction, and will not be offered or sold in the United States or to
U.S. persons absent registration or an applicable exemption from the
registration requirements. The offering of the new notes will be made
only to persons reasonably believed to be qualified institutional buyers
in accordance with Rule 144A under the Securities Act and to non-U.S.
persons in accordance with Regulation S under the Securities Act. The
new notes and the existing notes are expected to trade fungibly with one
another.

This press release is issued pursuant to Rule 135c of the Securities Act
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. Any offers of the new notes will be made only by means of a
private offering memorandum.

About Carvana Co.

Founded in 2012 and based in Phoenix, Carvana’s 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 18,000 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 new notes offering and the
proposed public offering of its Class A common stock. 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.

Contacts

Investor Relations:
Carvana
Mike Levin
[email protected]

error: Content is protected !!