Carvana Stock Skyrockets Following $1.2 Billion Debt Restructuring

Carvana (NYSE: CVNA), the fastest growing used car dealer in U.S. history, saw its share price jump by 43% in six minutes following its announcement that $1.2 billion of the company’s debt would be restructured.

Mark Jenkins, Carvana’s Chief Financial Officer, said, “This transaction significantly increases our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash interest expense as we continue to execute our plan of driving significant profitability and returning to growth.”

Highlights

The company’s transaction support agreement is with a group of noteholders representing over 90% of the aggregate principal amount outstanding of the Company’s existing senior unsecured notes.

New notes offered in the exchange are secured by Carvana and ADESA assets.

The agreement to eliminate more than 83% of Carvana’s 2025 and 2027 unsecured note maturities and lower required cash interest expense by over $430 million per year for the next two years.

Carvana also released record-breaking second quarter 2023 financial results.

About Carvana

Carvana (NYSE: CVNA) is the industry pioneer for buying and selling used vehicles online. As the fastest growing used automotive retailer in U.S. history, its proven, customer-first ecommerce model has positively impacted millions of people’s lives through more convenient, accessible and transparent experiences. Carvana.com allows someone to purchase a vehicle from the comfort of their home, completing the entire process online, benefiting from a 7-day money back guarantee, home delivery, nationwide inventory selection and more. Customers also have the option to sell or trade-in their vehicle across all Carvana locations, including its patented Car Vending Machines, in more than 300 U.S. markets. Carvana brings a continued focus on people-first values, industry-leading customer care, technology and innovation, and is the No. 2 automotive brand in the U.S., only behind Ford, on the Forbes 2022 Most Customer-Centric Companies List. Carvana is one of the four fastest companies to make the Fortune 500 and for more information, please visit www.carvana.com and follow us @Carvana.

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Carvana Stock Skyrockets Following $1.2 Billion Debt Restructuring

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