Carvana Plans $1 Billion Debt Exchange in Restructuring Bid
- New bonds would be secured by assets including vehicles
- Company’s stock and bonds have plunged in recent years
Vehicles sit inside a Carvana car vending machine in Westminster, California.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Carvana Co. said it’s offering to exchange as much as $1 billion of bond principal at below-par prices as the struggling online car seller works to restructure its debt load.
The company is offering to swap five series of bonds, including its 5.625% unsecured notes due 2025 and 10.25% unsecured notes due 2030 for new secured notes due 2028 that pay 9% in cash or 12% in-kind, according to a statement Wednesday. The debt will be secured by a second-priority claim on assets including vehicles.