Carvana Co 8-K, filed Sep 29, 2020
Carvana Co. (CVNA)
8-K
2020-09-29
For: 2020-09-29
View Original
Added on
April 11, 2026
About this 8-K
Carvana Co filed this 8-K on September 29, 2020.
Items reported
- Item 1.01: Entered into a material agreement
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 29, 2020
(Exact name of registrant as specified in its charter)
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Securities registered pursuant to Section 12(b) of the Act:
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Item 1.01 Entry Into a Material Definitive Agreement.
On September 29, 2020, a subsidiary of Carvana Co. (the “Company”), Ally Bank, and Ally Financial (together “Ally”) amended the Amended and Restated Master Purchase and Sale Agreement (the “MPSA”) to provide for the sale of up to an additional $1.0 billion of principal balance of finance receivables to Ally through March 23, 2021, representing a total of $3.0 billion in commitments to purchase finance receivables from the Company since March 2020.
On September 29, 2020, the Company and Ally restated the Amended and Restated Inventory Financing and Security Agreement (the “Floor Plan Facility”) to increase the line of credit to $1.25 billion, reduce the interest rate to one-month LIBOR plus 3.15% irrespective of the outstanding balance, and extend the maturity date to March 31, 2023. The Company will be required to pay Ally an availability fee based on the average unused capacity during the prior calendar quarter.
The foregoing descriptions of the amendment to the MPSA and restatement of the Floor Plan Facility do not purport to be complete and are qualified in their entirety by the terms and conditions of the amendment and the restatement, copies of which will be filed with the U.S. Securities and Exchange Commission as an exhibit to the Company’s Quarterly Report on Form 10-Q for the three months ending September 30, 2020.
Item 7.01 Regulation FD Disclosure.
On September, 29, 2020, the Company issued a press release announcing the transactions described above. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 7.01 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: | September 29, 2020 | CARVANA CO. | |||||||||||||||||||||||||||
| By: | /s/ Paul Breaux | ||||||||||||||||||||||||||||
| Name: | Paul Breaux | ||||||||||||||||||||||||||||
| Title: | Vice President, General Counsel and Secretary | ||||||||||||||||||||||||||||
Ally Increases Carvana Loan Purchase Commitment by $1 Billion, Increases Floor Plan Commitment to $1.25 Billion
PHOENIX (Sept. 29, 2020) – Today Carvana (NYSE: CVNA), a leading e-commerce platform for buying and selling used cars, announced a $1.0 billion increase to its current loan sale program with Ally Financial Inc. (NYSE: ALLY), demonstrating the success of the previous increase and extension of the facility completed earlier this year. This increase represents a total of $3.0 billion in commitment to fund Carvana customer loans since March 2020.
In addition to the increased loan purchase commitment, Ally Financial has also increased its commitment to provide funding through Carvana’s inventory floor plan from $950.0 million to $1.25 billion and has extended the facility from October 2020 through March 2023. This commitment from Ally will allow Carvana to continue increasing the number and diversity of its inventory, providing consumers with an even broader selection of vehicles to choose from.
“Ally has been with us from very early on when we were selling just a couple hundred cars per month,” said Ernie Garcia, Carvana founder and CEO. “I’m confident Ally will continue to play an important role as we make progress toward our goal of selling 2 million vehicles. We are proud to have their support and continue to expand our relationship.”
“Our goal is always to find the most effective ways to meet the specific needs of each of our dealer customers and help them grow their businesses,” said Doug Timmerman, president of Auto Finance for Ally. “The strong relationship we’ve built is a testament to Carvana’s unique digital platform and our focused dedication and expertise in the auto retail business.”
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About Carvana (NYSE: CVNA)
Founded in 2012 and based in Phoenix, Carvana’s (NYSE: CVNA) mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 15,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana’s patented, automated Car Vending Machines.
For further information on Carvana, please visit www.carvana.com, or connect with us on Facebook, Instagram or Twitter.
Investor Relations:
Carvana
Mike Levin
investors@carvana.com
Media Contact:
Carvana
Amy O’Hara
press@carvana.com