CVNA - Carvana creditors propose debt-for-equity swap - Bloomberg

2023-04-29 12:19:00 ET

Creditors who own about 90% of Carvana's ( NYSE: CVNA ) bonds are said to be pitching a deb-for-equity swap to the used-car company.

The creditor group, which is represented by White & Case and PJT Partners, recently proposed exchanging a "substantial"  amount of unsecured notes for equity in Carvana ( CVNA ), according to a Bloomberg report on Friday, which cited people familiar.  The bondholders would also allow the used-car company to pay some of its interest with additional debt, which is known as payment-in-kind.

Carvana ( CVNA ) hasn't formally engaged with the creditor group's proposal, according to the report. The offer isn't final and terms may change.

The report comes after the used-care retailer on April 19 extended the expiration date to May 3 for its previously-announced offers to exchange outstanding existing notes for up to $1 billion of new secured notes.

Carvana ( CVNA ) short interest is 65%.

Carvana ( CVNA ) is scheduled to report Q1 results on Thursday.

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