CarGurus announced a significant restructuring of its debt obligations during the second quarter 2026, extending its capital runway while reducing overall revolving capacity. The company amended its 2022 credit agreement to refine leverage constraints and push maturities into 2031.
Key Highlights
- Reduced aggregate revolving credit commitments by 50%, lowering the facility from $400.0 million to $200.0 million.
- Extended the credit facility's maturity date from September 2027 to August 6, 2031, providing long-term capital stability.
- Implemented a new incurrence-based covenant prohibiting additional debt if the Consolidated Total Gross Leverage Ratio exceeds 6.25:1.00.
- Increased the Cash-Capped Incremental Facility limit to the greater of $380.0 million or 100% of trailing four-quarter consolidated EBITDA.