Carvana Upsizes Term Loan to $1.66B, Slashes Interest Costs by $45M Annually
CVNA sits 33% above its 52-week low of $54.464.
Summary
Carvana priced a $1.66 billion senior secured term loan, upsized from an undisclosed amount, to redeem its 9.00% notes due 2030. The new facility, priced at SOFR + 225 bps and issued at 99.75% of par, extends maturities by seven years and cuts annual cash interest by roughly $45 million over the next four years. This follows a string of strong quarterly results and a recent Ally financing expansion to $8 billion, further strengthening a balance sheet that already carried net debt of just 1.0x trailing EBITDA. The refinancing replaces high-cost near-term debt with cheaper, longer-dated capital, directly boosting free cash flow and reducing refinancing risk. With $2.6 billion in cash and equivalents at quarter-end, the company is using opportunistic debt markets to lock in lower rates while growth remains robust.
At the time of this announcement, CVNA was trading at $72.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $79.2B. The 52-week trading range was $54.46 to $97.38. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.