TEMPE, Ariz.--(BUSINESS WIRE)--
Carvana Co. ("Carvana") (NYSE: CVNA), a leading e-commerce platform for
buying used cars, today announced that it has upsized and priced the
private placement of $350.0 million aggregate principal amount of its
8.875% Senior Notes due 2023 (the “Notes”). The offering was upsized
from the previously announced $300.0 million aggregate principal amount.
An entity affiliated with Ernest Garcia, II, Carvana’s controlling
shareholder, has agreed to purchase $25.0 million aggregate principal
amount of Notes in the offering. 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 September 21, 2018,
subject to customary closing conditions. Carvana intends to use the net
proceeds from this offering to pay its fees and expenses related to the
offering and for general corporate purposes.
The Notes will bear interest at a rate of 8.875% per year, payable
semi-annually on April 1 and October 1 of each year, beginning on
April 1, 2019. The Notes will mature on October 1, 2023, unless earlier
redeemed or repurchased.
The Notes, which will be guaranteed on a senior unsecured basis by
Carvana's existing domestic subsidiaries, were 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. Any offers of the Notes will be 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 10,000 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
proprietary 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180914005470/en/
Carvana Co.
Investor Relations:
Mike Levin
[email protected]
or
Media
Contact:
Kate Carver
[email protected]
Source: Carvana Co.
