TEMPE, Ariz.--(BUSINESS WIRE)--
Carvana Co. (NYSE: CVNA), a leading eCommerce platform for buying used
cars, today announced it has entered into an agreement to raise $100
million of Class A Convertible Preferred Stock in a private placement
with Dundon Capital Partners, an investment fund founded by automotive
industry veteran Tom Dundon. Carvana intends to use the proceeds to
drive growth, including expanding its offering to more customers across
the country.
“Tom Dundon has been a highly successful pioneer in the automotive
industry, including founding Santander Consumer USA, and we’re excited
to have him as a partner,” said Ernie Garcia, CEO of Carvana. “This deal
gives us flexibility to pursue valuable growth opportunities, including
opening additional markets, while continuing to focus on our path to
profitability.”
“I’ve been watching Carvana from afar for years and while the size of
the opportunity to bring automotive retail online has always been
interesting, their operational success of late has really impressed me,”
said Tom Dundon. “I couldn’t be more excited to be involved with such a
dynamic company.”
Carvana will raise the proceeds through the issuance and sale of 100,000
shares of a newly created series of Class A Convertible Preferred Stock
in a privately negotiated transaction exempt from registration under
Section 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities Act”), and the rules and regulations promulgated thereunder.
The Preferred Stock accrues dividends at the rate of 5.5% per annum, and
will be convertible into shares of Carvana’s Class A Common Stock at an
initial rate reflecting a conversion price of $19.6945 per share.
Carvana expects the sale to close promptly. Citigroup Global Markets
Inc. and Wells Fargo Securities, LLC served as Capital Markets Adviser
to Carvana.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The Preferred Stock and the shares of Common Stock
issuable upon conversion of the Preferred Stock will not be registered
under the Securities Act or any state securities laws, and unless so
registered, may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the
Securities Act and applicable state laws.
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 automotive retail platform, with a fully transactional
website that enables consumers to quickly and easily buy a car online,
including finding their preferred vehicle, qualifying for financing,
completing the purchase and loan with signed contracts, and receiving
delivery or pickup of the vehicle from one of Carvana’s proprietary
automated Car Vending Machines.
About Dundon Capital Partners
Dundon Capital Partners LLC is a private investment firm headquartered
in Dallas, Texas. Founded in 2015, Dundon Capital Partners LLC is
focused on private equity and credit investments across industries, and
looks to partner with best-in-class management teams to help companies
achieve their long-term objectives. The firm is led by founder Tom
Dundon, its Chairman and Managing Partner, who has more than 20 years of
experience as an entrepreneur, operator, and investor across numerous
industries. Selected current investments include Employer Direct
Healthcare, Topgolf and Redpoint Capital.
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 convertible preferred stock
offering. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171204005543/en/
Investor Relations:
Carvana Co.
Mike Levin
Vice
President, Investor Relations
[email protected]
or
Media
Contact:
Olson Engage
Kate Carver
[email protected]
Source: Carvana Co.
