Carvana Co., the fastest growing used car dealer in U.S. history, today announced that it entered into a transaction support agreement (the “Support Agreement”) with a group of noteholders representing over 90% of the aggregate principal amount outstanding of the Company’s existing senior unsecured notes.
“The strong performance of our business in 2023 presented an opportunity for an impactful and win-win transaction for Carvana and its senior unsecured noteholders,” said Mark Jenkins, Carvana’s Chief Financial Officer. “This transaction significantly increases our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash interest expense as we continue to execute our plan of driving significant profitability and returning to growth.”
“Apollo is pleased to support this debt exchange agreement, which stands to significantly strengthen Carvana’s financial position while providing creditors with new first lien debt. Working with Carvana, PIMCO, Ares and the ad hoc group of noteholders, we believe this agreement demonstrates the types of win-win outcomes that companies can achieve with constructive and engaged financing partners,” said John Zito, Apollo Deputy CIO of Credit. “We continue to have strong conviction in Carvana’s strategy and Ernie Garcia’s vision to revolutionize the way consumers buy, sell, and finance their vehicles.”
Carvana also released record-breaking second quarter 2023 financial results today that can be found on the Company’s Investor Relations website.
Moelis & Company LLC served as exclusive financial advisor and Kirkland & Ellis LLP served as exclusive legal advisor to the Company.
PJT Partners LP served as exclusive financial advisor and White & Case LLP served as exclusive legal advisor to the ad hoc group of holders of existing unsecured notes.
