2023-03-22 08:28:07 ET
- Carvana ( NYSE: CVNA ) announced that its exchange offer to creditors would reduce its annual cash interest bill by ~$100M and the face value of its outstanding $5.7B of unsecured bond debt by $1.3B, if fully subscribed.
- Financial Terms reports that the terms would be launched later during the day.
- The company will offer between 63c and 81c on the dollar to bonder-holder of five tranches of notes maturing between 2025 and 2030; bonds will have a cash interest rate of 9% a year and mature in 2028.
- The company will elect to pay up to 12% interest under a payment in kind arrangement.
- The holders would have a second priority claim behind Ally financial.
- Recently, SA Contributor UFD Capital wrote, "Carvana: Drowning In Debt With Deteriorating Gross Margins"
For further details see:
Carvana seeks to restructure $9B in debt