Carvana creditors propose debt-for-equity swap – Bloomberg (NYSE:CVNA)

Creditors who own about 90% of Carvana’s (NYSE:CVNA) bonds are said to be pitching a deb-for-equity swap to the used-car company.

The creditor group, which is represented by White & Case and PJT Partners, recently proposed exchanging a “substantial” amount of unsecured notes for equity in Carvana (CVNA), according to a Bloomberg report on Friday, which cited people familiar. The bondholders would also allow the used-car company to pay some of its interest with additional debt, which is known as payment-in-kind.

Carvana (CVNA) hasn’t formally engaged with the creditor group’s proposal, according to the report. The offer isn’t final and terms may change.

The report comes after the used-care retailer on April 19 extended the expiration date to May 3 for its previously-announced offers to exchange outstanding existing notes for up to $1 billion of new secured notes.

Carvana (CVNA) short interest is 65%.

Carvana (CVNA) is scheduled to report Q1 results on Thursday.

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