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


A Carvana glass tower sits illuminated in Oak Brook, Illinois, Feb. 23, 2022.

Armando L. Sanchez | Tribune News Service | Getty Images

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…

Source cnbc.com

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