Carvana shares jump more than 30% on deal to reduce debt by $1.2 billion

Carvana has reached a debt restructuring agreement that will reduce the used car retailer’s total debt outstanding by more than $1.2 billion, the company said Wednesday.

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

In a separate public filing Wednesday, the company said it will sell up to $1 billion in shares as it attempts to raise capital and restructure its operations.

Shares of the…