Carvana raises $126M from Garcia parties at 18% premium, completes equity requirements for debt exchange

CARVANA CO.

Raised $126M from Ernest Garcia II and III at $46.31/share, an 18% premium to Aug 18 closing price.
Combined with prior $225M ATM offering, total $351M meets all equity obligations under the TSA.
TSA reduces annual cash interest expense by >$430M each year for next 2 years, extends maturities, lowers total debt by >$1.2B.
Proceeds will partially fund cash tender offer for 5.625% senior unsecured notes due 2025.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CARVANA CO. entered into Securities Purchase Agreement with Ernest Garcia II and Ernest Garcia III (collectively, the "Garcia Parties") valued at $126,000,000 (effective 2023-08-18).

Action: entry
Agreement: equity purchase
Counterparty: Ernest Garcia II and Ernest Garcia III (collectively, the "Garcia Parties")
Value: $126,000,000
Effective: 2023-08-18

Exact text from the filing

on August 18, 2023, the Company and Carvana Group, LLC (“Carvana Group”) entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with the Garcia Parties providing for the purchase of an aggregate of 3,400,994 Class A LLC Units ("Class A Units") of Carvana Group, together with 2,720,795 shares of the Company’s Class B Common Stock, par value $0.001 per share (“Class B Common Stock”), at a price equivalent to $46.31 per share of Class A Common Stock of Carvana Co.

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CARVANA CO. filing history →

Source: SEC EDGAR

accession 0001690820-23-000267

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