Carvana, the used car retailer, has announced a debt restructuring agreement that will lead to a reduction of more than $1.2 billion in its total outstanding debt. The agreement will eliminate over 83% of its 2025 and 2027 unsecured note maturities and decrease the required cash interest expense by over $430 million annually for the next two years. Carvana also plans to raise capital and restructure its operations by selling up to $1 billion shares. Carvana faced financial challenges with high debt and mismanagement during the pandemic, resulting in a significant drop in its stock value. However, the recent second-quarter earnings report indicated improvement, with a reduced net loss of $105 million compared to the previous year's $439 million. Shares opened on Wednesday 35% higher at $53.99.
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00:00 Benzinga and here's what's on the block. Carvana, the used car retailer, has announced a debt
00:05 restructuring agreement that will lead to a reduction of more than $1.2 billion in its total
00:10 outstanding debt. The agreement will eliminate over 83% of its 2025 and 2027 unsecured note
00:17 maturities and decrease the required cash interest expense by over $430 million per year for the next
00:23 two years. Carvana also plans to raise capital and restructure its operations by selling up to $1
00:28 billion in shares. Carvana faced financial challenges with high debt and mismanagement
00:33 during the pandemic, resulting in a significant drop in its stock value. However, the recent
00:38 second quarter earnings report indicated signs of improvement, with a reduced debt loss of $105
00:43 million compared to the previous year's $439 million. Shares opened a Wednesday 35% higher
00:49 at $53.99. For all things money visit Benzinga.com.