Carvana Co. canceled a $1 billion debt swap after a group of creditors refused to exchange their notes, posing a challenge as the used car retailer attempts to rein in its debt load.
The online automobile seller failed to convince holders of at least $500 million of notes to participate in the exchange offer before the deal expired, according to a statement Friday.
The swap’s cancellation marks the latest blow for the Tempe, Arizona-based company, which had sweetened the deal terms and repeatedly extended the timeline in a bid to lure investor participation.
Read More : Carvana Scraps $1 Billion Debt Swap as Creditors Refuse to Agree