Carvana Co. (NYSE: CVNA) revealed that it has decided to offer up to $1.0 billion in aggregate principal amount of Senior Notes, including $500,000,000 aggregate principal amount of Senior Notes due 2025 and $500,000,000 aggregate principal amount of Senior Notes due 2028. These Senior Notes would be based on certain market conditions and other factors.
The company is planning to use a portion of the profit from these offerings to redeem in full $600 million aggregate principal amount of its outstanding 8.875% of Senior Notes which are due in 2023. Carvana has decided to use the remaining net profit to pay expenses and for many other business purposes.
The leading e-commerce platform for buying and selling used cars has also revealed that the notes will not be registered under the Securities Exchange Act of 1933 and will not be sold or offered to any person without registration or those who are not qualified to buy these notes. These notes will only be offered to those qualified buyers who fulfilled the requirements in accordance with Rule 144A.
Carvana Co. has also announced that it is foreseeing a record-breaking performance in Q3 2020 in various metrics including Total revenue, Retail units sold, Total gross profit per unit, and EBITDA margin. The company said that the momentum it saw in Q2 also accelerated into the Q3. Carvana saw a record-breaking performance in 2020 and provides the best experience to its customer and adopt all changes which 2020 brought in its business.
Carvana Co. (NYSE: CVNA) shares went up 30.61% as it gained +53.16 during the trading session of Tuesday. In the past 52-weeks of trading, this company stock has fluctuated between the low range of $22.16 and a high range of $235.00. It has traded up 923.60% from its 52-weeks low and traded down -3.48% from its 52-weeks high. Looking at its liquidity, it has a current ratio of 4.20. This company market capitalization has remained high, hitting $39.09 billion at the time of writing.