- Carvana aims to restructure its $9bn debt load to reduce annual cash interest bill by around $100mn.
- Exchange offer would reduce the face value of $5.7bn unsecured bond debt by $1.3bn.
- Restructuring comes after Carvana's breakneck growth was halted by rising interest rates and decreased demand.
- Cost-cutting measures are starting to bear fruit, with gross profit per unit rising to between $4,100 and $4,400.
- Shares jump 18% in early trade after Carvana releases Q1 results alongside exchange offer.
Financial Times — World — Debt Restructuring — Us & Canadian Companies — Retail & Consumer Industry — Capital Markets
Carvana to attempt restructuring of $9bn debt load
Carvana, the online used auto retailer, aims to restructure its $9bn debt load through an exchange offer to reduce its annual cash interest bill and stay afloat amid declining vehicle sales.