Carvana shares fall as Mark Walter’s units pledged to forward sale contracts
Carvana (CVNA) is down over two days as investors react to Mark Walter’s latest filing stating CVNA Sub pledged all Class A units and 5,995,376 Class B shares to prepaid variable forward sale contracts and margin loans.
CVNA Carvana is down 14% in 2 days because investors think Mark Walter might sell his stake.
His most recent filing says he already pledged it. "CVAN Sub has pledged all of such Class A Units and 5,995,376 shares of Class B common stock to secure its obligations under one or more prepaid variable forward sale contracts and certain margin loans with an unaffiliated third party." A prepaid variable forward is how you monetize a position without selling it.
And a margin loan against a stock falling 14% doesn't wait for anybody to decide.
Eric Jackson X post