Carvana looks to generate $600M in latest stock offering
Just about a week after landing a funding commitment of up to $2.0 billion from Ally Financial, Carvana is turning back to the investment community to generate more financial resources.
On Monday morning, Carvana announced the pricing of a registered direct offering of 13.3 million shares of Class A Common Stock to certain existing investors. The company said each share of common stock is being sold for a purchase price of $45.00, resulting in gross proceeds of $600 million.
Carvana said in a news release the offering included investments of $25 million each from Ernest Garcia III, the company’s founder and chief executive officer, and Ernest Garcia II, the company's controlling shareholder.
The offering is expected to close on or about Wednesday, subject to customary closing conditions.
Carvana said it intends to use the net proceeds from the public offering of common stock for general corporate purposes.
“This press release shall not constitute an offer to sell or the solicitation of an offer to buy this common stock, nor shall there be any sale of this common stock in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction,” Carvana said.