Shares of Carvana rose on Wednesday after the company released plans to restructure some of its $9B debt load.
Carvana said it expects a Q1 loss of between $50M and $100M, down from a loss of $348M previously reported.
In a recent SEC filing, Carvana is offering its noteholders the option to exchange their unsecured notes at a premium to current trading prices in exchange for new secured notes.
- The move would reduce Carvana’s cash interest expense while providing the company’s noteholders with collateral.
- The offer, if fully subscribed, would reduce Carvana’s outstanding $5.7B of unsecured bond debt by $1.3B and its annual cash interest bill by about $100M.
- Carvana expects Q1 unit sales to be between 76,000 and 79,000, down from 105,185 reported last year.
