Carvana Launches Debt Exchange After Deal With Creditor Group

Carvana Co. kicked off debt exchanges as part of its sweeping restructuring plan that will help it cut around $1.2 billion of debt.

The company is offering to swap bonds due between 2027 and 2030 for new secured notes that pay interest in cash or in kind. It’s also seeking to repurchase its 5.625% notes due 2025 for 85 cents on the dollar, according to a statement.

The online used car seller company formally announced the debt exchange offers Wednesday morning after reaching a deal with with a group of lenders including Apollo Global Management Inc. and Pacific Investment ...