Case Study · Term Loan B
Carvana Taps Institutional Loan Market to Repay Bonds
$1.7bn 7yr Senior Secured Term Loan B
August 2026
- On 8/12/26, Carvana Co. (NYSE: CVNA) priced a $1.7bn 7yr Senior Secured Term Loan B at SOFR + 225bps and 99.75; launched at $1.0bn with talk of S+225–250 at 99.0–99.5, the loan was upsized by $660mm and priced at the high end
- Proceeds and cash on hand redeem in full the $1.7bn of 9.00% Cash / PIK Senior Secured Notes due 2030 (issued at $1.5bn in Sep-23; the balance includes PIK accretion), with $1.0bn redeemed 8/15/26 and the balance 8/22/26
- Carvana expects the refinancing to cut cash interest by ~$45mm annually
- The retired notes came out of the Sep-23 distressed exchange that recapitalized Carvana – this replaces that structure's near-dated tranche at ~275bps lower cash cost
- The loan was marketed with 2Q26 TTM Adj. EBITDA of $2.6bn and net debt of $2.6bn, or 1.0x net leverage
- Carvana is now rated BB- by S&P and Fitch (facility BB / BB+) and B2 by Moody's, up from CCC+ / Caa3 after the 2023 exchange
- The facility amortizes 0.25% quarterly, carries no financial covenant, and is callable at par subject to a 1.00% soft call for six months
- $2.3bn of 9.00% Senior Secured Notes due 2031 remain outstanding as the next refinancing candidate
| Final Terms | Term Loan B |
|---|---|
| Pricing Date | August 12, 2026 |
| Borrower | Carvana Co. (NYSE: CVNA) |
| Corporate Ratings | BB- / B2 / BB- |
| Facility Ratings | BB / n.a. / BB+ |
| Issue | Senior Secured Term Loan B |
| Amount | $1,660mm |
| MaturityTenor | August 20337yr |
| AmortizationCall Protection | 0.25% quarterlyPar; 1% soft call 6mo |
| PricingIssue PriceYield | Term SOFR + 225 bps99.755.93% |
Ratings: S&P / Moody's / Fitch. S&P and Fitch per Bloomberg Law (8/11/26); Moody's B2 CFR as of Oct-25
Sources: CVNA Form 8-K dated 8/14/26; pricing press release dated 8/12/26; Form 10-Q for the quarter ended 6/30/26; Bloomberg Law (8/11/26)
Case studies are prepared by Trackhawk Advisors from the sources cited on each page. They are for information only and are not investment advice or a recommendation to buy or sell any security.
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