Carvana, the e-commerce platform for buying and selling cars, announced the successful upsize and pricing of a Senior Secured Term Loan B Facility in an aggregate principal amount of $1.66 billion. The company intends to use proceeds from the Term Loan B, together with cash on hand, to redeem in full the Company’s 9.00% Senior Secured Notes due 2030.
Over the past 10 quarters, Carvana has generated industry-leading growth and industry-leading profitability. The company’s performance and opportunistic capital structure improvements have resulted in its strongest-ever financial position. As of Q2 2026, Carvana’s net debt to trailing twelve-month Adjusted EBITDA ratio was 1.0x.
This transaction further strengthens Carvana’s financial position by replacing the Company’s nearest maturity secured notes with longer-dated and lower-cost financing, extending the Company’s debt maturity profile and reducing cash interest expense by approximately $45 million per year over the next four years. The Term Loan B priced at one-month Term SOFR + 225 basis points and was issued at 99.75% of the principal amount. The Term Loan B will mature seven years after the date of closing.
