Cazoo (NYSE: CZOO), a European online car retailer, agreed to issue and sell, via a private placement, 2.00% convertible senior notes in an aggregate principal amount of $630m.
The Notes will be convertible into Cazoo Class A Ordinary Shares (the “Shares”) at an initial conversion price of $5.00, which represents approximately a 20% premium to the trailing 5 trading day volume-weighted average price of the Shares.
The deal is led by new investor Viking Global Investors, alongside participation from several existing
shareholders including Mubadala Investment Company, D1 Capital and Willoughby Capital as well as other new and existing investors.
Closing of the Transaction is subject to customary conditions.
Following the progress made since its launch two years ago, the additional capital will support Cazoo’s continued growth in the UK and expansion in Europe. The new proceeds, combined with Cazoo’s existing cash and cash equivalent position of approximately $260 million as of December 31, 2021, will leave the company with a pro forma cash balance approaching $900 million following the transaction.
Alex Chesterman OBE, Founder & CEO, Cazoo has established a platform, team, brand and
infrastructure in the UK and started to expand its proposition into the EU, having recently launched in France
and Germany and acquired businesses and teams in Italy and Spain. The company now operates in the largest five markets in Europe – the UK, France, Germany, Italy and Spain. Over the past 12 months, Cazoo has continued its growth trajectory and made significant progress against its key strategic objectives. The company has expanded its reconditioning capabilities, taking UK reconditioning fully in-house and grown from just one site at this time last year to 11 in-house reconditioning sites with a potential output capacity of around 250,000 units per annum.
In addition to expanding its infrastructure capabilities and geographic reach, the company has also materially enhanced its product proposition. Cazoo is now the market leader in consumer car subscriptions in Europe with around 10,000 active subscribers.
FinSMEs
11/02/2022