Carvana Co. (NYSE: CVNA), the leading e-commerce platform for buying and selling used cars, today announced it has priced the private placement of $750.0 million in aggregate principal amount of its 4.875% Senior Notes due 2029 (the “Notes”).
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 August 16, 2021, subject to customary closing conditions. Carvana intends to use the net proceeds from the offering for general corporate purposes.
The Notes will bear interest at a rate of 4.875% per year, payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2022. The Notes will mature on September 1, 2029, unless earlier redeemed or repurchased.
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The Notes, which generally will be guaranteed on a senior unsecured basis by Carvana’s existing domestic subsidiaries, are being 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. Offers of the Notes are being made only by means of a private offering memorandum.
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