Carvana Co. Enters $1.66B Term Loan B to Refinance 2030 Secured Notes

What Happened

• Carvana Co. announced on August 14, 2026 that it entered into a Credit Agreement providing a $1.66 billion senior secured Term Loan B facility, with Barclays Bank PLC as administrative agent. The Term Loan B matures August 14, 2033 and is intended primarily to redeem or repay the company’s outstanding 9.0%/11.0%/13.0% Cash/PIK Senior Secured Notes due 2030 (the “2030 Secured Notes”).
• The company set redemption dates for the 2030 Secured Notes: $1.0 billion on August 15, 2026 (First Redemption Date) and the remaining balance on August 22, 2026 (Second Redemption Date). The Credit Agreement is filed as Exhibit 10.1 to the 8‑K.

Key Details

• Facility size and pricing: $1.66 billion Term Loan B issued at 99.75% of par.
• Interest: at borrower’s option, Term SOFR + 2.25% or a base rate + 1.25%.
• Amortization/maturity: quarterly amortization of 0.25% of original principal beginning the second full fiscal quarter after closing; remaining balance due at maturity (Aug 14, 2033).
• Prepayments and cash flow: prepayments allowed without penalty (with a possible 1.00% premium for certain repricings within 6 months); mandatory prepay of 50% of excess cash flow beginning with fiscal year ending Dec 31, 2028 (subject to reductions if leverage targets met).
• Security and guarantees: obligations are secured by liens on collateral and guaranteed by certain domestic subsidiaries; customary events of default and lender remedies apply.
• Optional features: Company may seek incremental facilities or offers to extend maturities with consenting lenders.

Why It Matters

• This transaction provides liquidity and replaces the company’s 2030 secured notes, changing Carvana’s near-term debt profile and extending the maturity to 2033. For investors, key items to watch are the effective interest cost (SOFR margin vs. base rate), the amortization schedule and mandatory prepayment mechanics (including excess cash flow sharing starting 2028), and the impact on cash flow available for operations and growth.
• The loan is secured and limited by customary covenants (though it does not include a financial covenant), so investors should monitor Collateral, covenant compliance, and any future requests for incremental financing or maturity extensions by the company.