Home Debt Carvana Plans Turnaround With Strategic Restructuring, Stock Rebound And Debt Overhaul: Report – Carvana (NYSE:CVNA)

Carvana Plans Turnaround With Strategic Restructuring, Stock Rebound And Debt Overhaul: Report – Carvana (NYSE:CVNA)

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Carvana Co. (NYSE:CVNA) is reportedly gearing up for a restructuring.

Over the past 18 months, Carvana has undertaken a significant restructuring, focusing on operations and debt reduction amidst bankruptcy concerns, reported CNBC.

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These strategic moves are crucial for the company and its major shareholders, particularly CEO Ernie Garcia III and his father, Ernie Garcia II, who collectively control 88% of Carvana through special voting shares.

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The ongoing efforts have proven successful, leading to a notable improvement in Carvana’s stock performance. 

While the stock has rebounded from less than $5 per share to over $55 at the start of 2024, it remains significantly below its peak of over $370 per share reached during the 2021 COVID-19 pandemic, CNBC noted.

“We have every intention of continuing to make progress and don’t expect to return to a situation like that,” the company CEO told CNBC in an interview. “I think the pressure of the last two years caused us to really focus on the most important things.”


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By the conclusion of the third quarter, Carvana boasted $544 million in cash and cash equivalents, witnessing a $228 million increase from the previous year’s end. The company’s overall liquidity, encompassing secured debt capacity and other elements, amounted to $3.18 billion.

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Carvana’s fresh notes are set to mature in 2028, while the existing notes, with interest rates ranging from just under 5% to over 10%, have maturity dates spanning from 2025 to 2030, CNBC added. 

Collectively, the old and new notes constitute approximately 78% of Carvana’s nearly $6 billion total debt.

The company is scheduled to report its fourth quarter and fiscal year 2023 financial results after the market closes on Thursday, Feb. 22.

Price Action: CVNA shares closed higher by 2.16% to $43.45 on Friday. Shares fell 0.23% to $43.35 after hours. 

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Shutterstock


“Start 2024 Strong With 3 Hot Stock Ideas – Practically Free”

Ready for your shot at the next potential 32%, 39% or 45% gains in today’s market? You’re about to miss Stock Expert Gianni Di Poce’s 3 latest stock ideas… Ones that could shift your entire wealth-building journey. If you’re ready to start 2024 strong with 12 hot stock ideas every single month. ACT FAST.


© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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