2:32 pm, November 10, 2022
Used car retailer Cazoo has managed to extend its financing deal by almost 11 months.
In a brief press release issued today, the self-styled online disruptor said holders – aka noteholders – of 96 per cent of its $630m (circa £543m) of 2.00 per cent convertible senior notes that are due to mature in 2027 had voluntarily agreed to lengthen their lock-up agreements.
A convertible senior note is a debt security with an option to convert the note into an agreed number of shares.
The lock-up period – during which time investors aren’t allowed to sell their shares – was due to end last Sunday (Nov 6) but has now been extended to September 30, 2023.
The investors can earn interest payments with the notes, but these usually accrue, with the company owing the investor an increasing amount over time.
Cazoo founder and chief executive Alex Chesterman said: ‘We believe that the voluntary extension of the lock-up period by our noteholders demonstrates their continued commitment to and confidence in the company.
‘In under 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 five per cent or greater share of the £100bn UK used car market and achieve significant profitability while maintaining our market-leading consumer proposition.
‘We are pleased that our noteholders share our confidence in the opportunity ahead and have signalled their continued support through this voluntary lock-up extension.’
The news comes two months after Cazoo revealed that it was pulling out of mainland Europe to focus on the UK market.
That followed a strategic review by Cazoo, as well as the news that it would be slashing 750 jobs in the UK and elsewhere plus cutting costs.
Main image: Cazoo
