Movement Alert|Carvana Co. Falls 3.13% in Pre-Market Trading, $1.66 Billion Refinancing Adds Pressure Amid Ongoing Target Price Cuts

Market Focus
08/13

On August 13, Carvana Co. fell 3.13% in pre-market trading, trading at $70.01 USD/share, with turnover of $507,100.

On the news front, the company announced on August 12 that it has upsized and priced a $1.66 billion senior secured term loan B facility, with proceeds to be used to fully redeem its 9.00% senior secured notes due 2030. The facility is priced at one-month term SOFR plus 225 basis points, issued at 99.75% of principal amount with a seven-year maturity. While the refinancing lowers the coupon rate, the large-scale debt transaction compounds existing headwinds from the company's full-year adjusted EBITDA guidance of $27-30 billion falling below some Wall Street estimates.

Multiple institutions have recently cut their price targets on the stock, with BNP Paribas lowering to $69 from $86, Evercore ISI to $75 from $86, and BofA to $75 from $88, reflecting persistent concerns over decelerating profit growth and the company's debt structure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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