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).
