Carvana Secures $1.66B Term Loan B Facility to Refinance 2030 Senior Secured Notes

Carvana Co. has entered into a new Credit Agreement for a $1.66 billion senior secured term loan B facility, which matures in 2033. The company intends to use the net proceeds primarily to refinance its outstanding 9.0% / 11.0% / 13.0% Senior Secured Notes due 2030, with the remainder allocated for fees, expenses, and general corporate purposes.

Key Details

• Facility Details: The agreement provides for a $1.66 billion senior secured Term Loan B facility maturing on August 14, 2033.
• Use of Proceeds: Net proceeds will be used to fully redeem the company's outstanding 9.0% / 11.0% / 13.0% Cash / PIK Senior Secured Notes due 2030.
• Redemption Timeline: The redemption of the 2030 Secured Notes is scheduled in two tranches: $1.0 billion on August 15, 2026, and the remaining principal amount on August 22, 2026.
• Interest Rate: The new term loan will bear interest at the company's option of either Term SOFR plus an applicable margin of 2.25% or a base rate plus a margin of 1.25%.