Transportation
Carvana Soars After Reaching Debt Restructuring Deal
- Bondholder deal extends maturities, cuts debt by $1.2 billion
- Company also beats earnings estimates, files to sell shares
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Carvana Co. will restructure its debt and sell shares as the used-car retailer tries to regain its footing following a pandemic boom and bust.
The agreement with bondholders announced Wednesday will eliminate about 83% of Carvana’s 2025 and 2027 unsecured note maturities and lower required cash interest expense by $430 million a year for the next two years. The company expects to reduce its total debt outstanding by more than $1.2 billion.