8-KMaterial AgreementsExhibits & Filings

CARVANA CO. 8-K Report, Material Agreement (Apr 25, 2019)

Filed April 25, 2019For Securities:CVNA

Summary

Carvana Co. (CVNA) announced a new $300.0 million revolving credit facility with Ally Bank, effective April 19, 2019. This facility, aimed at financing automotive finance receivables and related assets, extends the company's funding options for its core business operations. The credit facility is set to mature on April 17, 2020, providing a substantial source of capital for the near term. In conjunction with the new credit facility, Carvana also amended its Master Purchase and Sale Agreement. Key amendments include extending the Scheduled Commitment Termination Date to April 17, 2020, aligning it with the credit facility's maturity. Additionally, the company adjusted the maximum commitment for purchasing automotive finance receivables to $1.0 billion after April 19, 2019, reflecting a recent securitization transaction that reduced anticipated sales under this agreement. These actions demonstrate Carvana's efforts to optimize its financing structure and manage its capital efficiently.

Key Highlights

  • 1Carvana secured a new $300.0 million revolving credit facility from Ally Bank.
  • 2The credit facility is designed to fund automotive finance receivables and related assets.
  • 3The new financing arrangement matures on April 17, 2020.
  • 4Carvana amended its Master Purchase and Sale Agreement.
  • 5The amendment extends the Scheduled Commitment Termination Date to April 17, 2020.
  • 6The amendment adjusts the maximum commitment for purchasing automotive finance receivables to $1.0 billion post-April 19, 2019.
  • 7The adjustment to the Purchase and Sale Agreement reflects a reduction in expected sales due to a recent securitization transaction.

Frequently Asked Questions

The primary purpose of the new $300.0 million revolving credit facility with Ally Bank is to provide funding for Carvana's automotive finance receivables and related assets, which are crucial for its business operations.

The new revolving credit facility is set to expire on April 17, 2020.

The Master Purchase and Sale Agreement was amended to extend its commitment termination date and to adjust the maximum commitment for purchasing automotive finance receivables. This adjustment was made in response to a recent securitization transaction that reduced Carvana's expected sales under the agreement.

Following the amendment, the purchaser's commitment under the Purchase and Sale Agreement to purchase automotive finance receivables after April 19, 2019, has been adjusted to a maximum of $1.0 billion.