PHOENIX–(BUSINESS WIRE)–Carvana (NYSE: CVNA), the leading e-commerce platform for buying and selling cars, today announced the successful upsize and pricing of a Senior Secured Term Loan B Facility in an aggregate principal amount of $1.66 billion (the “Term Loan B”). The company intends to use proceeds from the Term Loan B, together with cash on hand, to redeem in full the Company’s 9.00% Senior Secured Notes due 2030.
Over the past 10 quarters, Carvana has generated industry-leading growth and industry-leading profitability. The company’s performance and opportunistic capital structure improvements have resulted in its strongest-ever financial position. As of Q2 2026, Carvana’s net debt to trailing twelve-month Adjusted EBITDA ratio was 1.0x. This transaction further strengthens Carvana’s financial position by replacing the Company’s nearest maturity secured notes with longer-dated and lower-cost financing, extending the Company’s debt maturity profile and reducing cash interest expense by approximately $45 million per year over the next four years.
The Term Loan B priced at one-month Term SOFR + 225 basis points and was issued at 99.75% of the principal amount. The Term Loan B will mature seven years after the date of closing.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance, and business. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning. Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to the “Risk Factors” identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our Quarterly Reports on Form 10-Q. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial measures, which are prepared and presented in accordance with GAAP, we also refer to the following non-GAAP measures in this press release: Adjusted EBITDA and net debt.
Adjusted EBITDA is defined as net income plus (minus) income tax (benefit), interest expense, net, other operating expense, net, other expense, net, depreciation and amortization expense in cost of sales and SG&A expenses, share-based compensation expense in cost of sales and SG&A expenses, and loss on debt extinguishment, minus revenue related to our Warrants.
Net debt is defined as total debt less cash and cash equivalents.
We believe that these metrics are useful measures to us and to our investors because they exclude certain financial, capital structure, and non-cash items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations, in part because they may vary widely across time and within our industry independent of the performance of our core operations. We believe that excluding these items enables us to more effectively evaluate our performance period-over-period and relative to our competitors.
| (dollars in millions) | June 30, 2026 | ||
| Senior Unsecured Notes |
$ |
107 |
|
| Senior Secured Notes |
|
3,929 |
|
| Floor plan facility |
|
126 |
|
| Financing of beneficial interests in securitizations |
|
396 |
|
| Real estate financing |
|
485 |
|
| Transportation fleet financing |
|
90 |
|
| Finance lease liabilities |
|
118 |
|
| Less: unamortized debt issuance costs |
|
(32 |
) |
| Plus: unamortized premium |
|
17 |
|
| Total debt |
|
5,236 |
|
| Less: cash and cash equivalents |
|
(2,630 |
) |
| Net debt |
$ |
2,606 |
|
| (dollars in millions) | Twelve Months Ended June 30, 2026 | ||
| Net income |
$ |
2,132 |
|
| Income tax benefit |
|
(2,685 |
) |
| Interest expense, net |
|
423 |
|
| Other operating expense, net |
|
1 |
|
| Other expense, net |
|
2,353 |
|
| Loss on debt extinguishment |
|
14 |
|
| Depreciation and amortization expense in cost of sales |
|
108 |
|
| Depreciation and amortization expense in SG&A expenses |
|
164 |
|
| Share-based compensation expense in cost of sales |
|
3 |
|
| Share-based compensation expense in SG&A expenses |
|
97 |
|
| Warrant revenue |
|
(21 |
) |
| Adjusted EBITDA |
$ |
2,589 |
|
| Net debt to TTM Adjusted EBITDA | 1.0x | ||
| Total debt to TTM Net income | 2.5x | ||
