Cazoo Raises $630 Million in Convertible Notes
Posted on 02/10/2022
Cazoo (NYSE: CZOO), a European online car retailer, announced that it has agreed to issue and sell, via a private placement, 2.00% convertible senior notes in an aggregate principal amount of US$ 630 million. The Notes will be convertible into Cazoo Class A Ordinary Shares at an initial conversion price of $5.00, which represents approximately a 20% premium to the trailing 5 trading day volume-weighted average price of the Shares. The transaction is led by new investor Viking Global Investors, alongside participation from several existing shareholders including Mubadala Investment Company, D1 Capital, and Willoughby Capital as well as other new and existing investors.
The financing will supplement Cazoo’s liquidity position and will provide a material multi-year runway for the company to be able to execute on its strategy over the coming years. The new proceeds, combined with Cazoo’s existing cash and cash equivalent position of approximately US$ 260 million as of December 31, 2021, will leave the Company with a pro forma cash balance approaching US$ 900 million following the transaction. Cazoo is a British online car retailer based in London, England and founded in 2018 by Alex Chesterman.
Advisors
Goldman Sachs International served as exclusive placement agent to Cazoo in connection with the transaction. Freshfields Bruckhaus Deringer US LLP is acting as legal counsel to Cazoo in connection with the transaction.