In less than a year the company has seen a public listing via a SPAC merger, record Q2 numbers, and a seemingly unending round of acquisitions including SMH Fleet Solutions for £70 million and Swipcar for €30 million, and brumbrum for €80 million.
And now, the company is adding another $630 million to the fires through a 2 percent sale via convertible senior notes, that subsequently will convert to Class A ordinary shares at a price of $5.00 per share. This price represents a 20% premium to the trailing 5 trading day volume-weighted average price of the share.
As a reminder: Cazoo’s initial share price was listed at $10, a common figure for most SPAC listings, with the market then determining how much the company is worth.
As pointed out by Atreides Managment‘s Gavin Baker:
1) We will see more of these. Senior convertible notes at $5 vs. the original $10 SPAC merger price. Essentially growth equity rounds in illiquid public equities.
— Gavin Baker (@GavinSBaker) February 13, 2022
The purchasing parties of said shares are led by Viking Global Investors with several existing shareholders including Mubadala Investment Company, D1 Capital, and Willoughby Capital all ponying up.
