Carvana Soars On Debt-Restructuring Deal, Launches Stock Offering

Carvana shares surged Wednesday after the used-car retailer said that it had reached a bond-swap deal to reduce its debt by $1.2 billion and launched plans to issue stock through an at-the-market offering. 

The company said that it had reached an agreement with a group of investors including Apollo Global Management, Pimco and Ares, who collectively own $5.2 billion of its outstanding unsecured bonds, to swap their holdings into new secured bonds that have the option to pay interest in-kind, meaning that it can be tacked onto…