Cazoo ‘agrees debt-for-equity swap’ which will see bond holders seize control of troubled used car dealer

  • Cazoo said to be restructuring its debt with debt-for-equity swap worth $630m
  • US fund Viking Global Investors set to become Cazoo’s biggest shareholder
  • Alex Chesterman’s future at the firm believed to be hanging in the balance
  • Announcement could be made as soon as today (Sep 20)

Time 8:34 am, September 20, 2023

Troubled used car dealer Cazoo appears to have agreed terms on a deal with its bond holders which could see it ‘restructure’ its crippling debt.

The firm has been in talks with shareholders for several months after admitting in its accounts it was worried that it would be liable to repurchase the $630m notes should its shares cease to trade on the NYSE.

Car Dealer reported earlier in the year that Cazoo was ‘in discussions with a majority of the holders of its Convertible Notes on a potential debt restructuring’.

It now seems that a package has been agreed, potentially saving the firm from crisis.

Sky News reports that the ‘finishing touches’ are being put on a $630m debt-for-equity swap which will leave US fund Viking Global Investors as Cazoo’s biggest shareholder.

The transaction will involve $200m of new borrowing facilities, following financial difficulties in recent years.

Sources close to the deal say that an announcement to the New York Stock Exchange could come as soon as today (Sep 20).

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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