Carvana priced an upsized $1.66 billion Senior Secured Term Loan B facility. The company will use the proceeds and cash on hand to fully redeem its 9.00% Senior Secured Notes due in 2030.
The new term loan matures in seven years. It features a pricing of one-month Term SOFR plus 225 basis points.
This transaction will reduce annual cash interest expenses by approximately $45 million. These savings are projected over each of the next four years.
The refinancing replaces existing debt with a lower-cost, longer-dated alternative on a leverage-neutral basis. Carvana’s improved financial standing and strong recent performance supported the upsized offering.