U.K.-based digital auto retailer Cazoo has extended the lock-up period on a financing deal by almost a year, according to a press release.
96% of holders of a $630 million U.S. 2% convertible senior note that is due to mature in 2027 have voluntarily agreed to extend the lock-up period that was agreed at the time of issuance by more than ten months—-from 6 Nov. 2022 to 30 Sep. 2023. A lock-up period refers to a period in which an investment cannot be sold or redeemed.
Cazoo said the extension represented a sign of “their continued support of the business.”
“We believe that the voluntary extension of the lock-up period by our noteholders demonstrates their continued commitment to and confidence in the company,” said Cazoo founder and CEO Alex Chesterman.
“In under three years since our launch, we have become the largest independent used car retailer in the U.K., 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 greater share of the £100 billion U.K. 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.”
Founded in 2018, Cazoo recently published financial results for Q3 2022. These showed that the company is continuing to grow sales in the U.K. while executing a “realignment plan” that has seen it retreat from mainland Europe. Having floated at $11.30 in late 2020, the company’s share price peaked at $13.60 in February 2021 but stood at just $0.35 at the time of writing.
