Used car retailer Cazoo has successfully extended its financing deal by nearly 11 months.
In a brief press release issued today, the so-called online disruptor said the holders – aka ticket holders – of 96% of its $630m (about £543m) worth of senior 2.00% convertibles due to mature in 2027 had voluntarily agreed to extend their lock-up agreements.
A senior convertible bond is a debt security with an option to convert the bond into an agreed number of shares.
The lock-up period – during which investors are not allowed to sell their shares – was due to end last Sunday (November 6), but has now been extended until September 30, 2023.
Investors may earn interest payments with the notes, but these generally accumulate, with the company owing the investor an increasing amount over time.
Cazoo Founder and Managing Director Alex Chesterman said: “We believe the voluntary extension of the lock-up period by our Noteholders demonstrates their continued commitment and confidence in the company.
“In less than three years since our launch, we have become the largest independent used car retailer in the UK, having now sold over 100,000 vehicles entirely online.
“We continue to grow our market share and are confident in our ability to capture a 5% or more share of the £100 billion UK used car market and achieve significant profitability while maintaining our offering. to market-leading consumers.
“We are delighted that our ticketholders share our confidence in the upcoming opportunity and have signaled their continued support through this voluntary blocking extension.”
The news comes two months after Cazoo revealed he was withdraw from continental Europe to focus on the UK market.
This followed a strategic review by Cazoo, as well as the announcement that it would be cutting 750 jobs in the UK and elsewhere and cutting costs.
Main Image: Cazoo