Item 1.01. Entry Into a Material Definitive Agreement.
On October 1, 2020, Vroom, Inc. (the "Company"), its wholly-owned subsidiary
Left Gate Property Holding, LLC ("Left Gate" and, together with the Company, the
"Borrower") and Ally Bank and Ally Financial Inc. (together, "Ally") amended the
Inventory and Financing and Security Agreement dated March 6, 2020 (the "Floor
Plan Facility") to extend the maturity date to September 30, 2022. The amendment
also reduces the minimum liquidity requirement to 7.5% of the credit line from
10% of the floorplan allowance, reduces the inventory equity covenant to 5% from
10%, eliminates certain other covenants, and requires the Borrower to pay Ally
an availability fee if the average unused capacity during the prior calendar
quarter was greater than 50% of the floorplan allowance.
Item 7.01 Regulation FD Disclosure.
On October 6, 2020, the Company issued a press release announcing the amendment
described above. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
The information contained in this Item 7.01 shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), or otherwise subject to the liabilities of that section, nor
shall it be deemed incorporated by reference in any filing made by the Company
under the Securities Act of 1933, as amended, or the Exchange Act, regardless of
any general incorporation language in such filings, unless expressly
incorporated by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
No. Description
99.1 Press Release, dated October 6, 2020 .
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