Carvana shares surged this week after the struggling used car retailer pre-announced stats from their first quarter and released plans to restructure some of its $9B debt. Here’s what we learned:
🌹 The company’s stock rose nearly 30% on Wednesday morning before leveling off at around a 20% increase.
💸 They are expecting a first-quarter loss of around $50-100M, which is actually a drastic improvement when the $348M loss it reported the previous year is taken into account.
📝 As a solution to its debt issue, Carvana is giving noteholders the opportunity to swap their unsecured notes for new secured notes at a premium to the present trading prices.