Loan Covenant Compliance — Carvana FY2025

MacrosLM Finance Knowledge

LOAN COVENANTS / HIGH-YIELD CREDIT / CASE: CVNA

§ 02Carvana · quarterly covenant readout (Q4 FY25)

Carvana files quarterly compliance certificates as part of its 8.0% / 12.0% PIK senior secured notes (2028–2031 maturities). Below is a reconstructed officer's certificate from FY25 reported figures. Compliance: pass, with headroom narrowing on the secured-leverage incurrence test.

Compliance certificate · Q4 FY25 · reconstructed from 10-K

Covenant	Type	Required	Actual	Headroom	Status
Financial covenants · incurrence
Secured net leverage	Incurrence · debt	≤ 2.50×	2.18×	0.32×	Pass · tight
Total net leverage	Incurrence · debt	≤ 5.50×	4.42×	1.08×	Pass
Interest coverage (EBITDA/Int)	Incurrence · restricted pmts	≥ 2.00×	4.20×	2.20×	Pass
Fixed-charge coverage	Incurrence · restricted pmts	≥ 1.50×	2.45×	0.95×	Pass
Financial covenants · maintenance (springing)
Min liquidity	Maintenance · springing	≥ $150M	$2,327M	15.5× cushion	Pass
Operational · negative
Asset-sale sweep	Negative · disposition	100% of NCP*	$0	—	N/A
Restricted-payments basket	Negative · RP	$250M cap	$0 used	$250M	Pass
Additional first-lien debt	Negative · debt	≤ $300M basket	$0 used	$300M	Pass
Permitted-lien basket	Negative · liens	$100M cap	$42M used	$58M	Pass
Reporting · affirmative
Audited annual financials	Affirmative · 90 days	≤ 90d post-FYE	62d	28d early	Pass
Compliance certificate	Affirmative · quarterly	≤ 45d post-Q	39d	6d early	Pass
Overall compliance · Q4 FY25					Pass · 11 of 11

*NCP = net cash proceeds. Threshold values reflect the 2023 exchange notes' typical structure; actual Carvana indentures are publicly filed but specifics here are illustrative reconstructions from 10-K disclosure.