Carvana (CVNA) Secures New Loan, Is It Still Below Fair Value?

Why Carvana’s new loan matters for stockholders Carvana (CVNA) has secured a new US$1.66b Senior Secured Term Loan B facility, giving the company room to redeem its 9.00% Senior Secured Notes due 2030 and extend its debt schedule. The move is expected to lower Carvana’s cash interest costs by about US$45 million per year over the next four years. For stockholders, this changes the funding profile at the same time the business reports improving profitability metrics. See our latest analysis...