Carvana secures $1.6bn loan at lower rate, signaling balance sheet recovery

Used-car retailer Carvana has refinanced a portion of its debt, securing a new $1.6 billion loan with a yield just over 6%. The proceeds will pay off an existing bond carrying a 9% coupon, a move expected to generate significant interest savings. The favorable terms reflect the company's improved financial position, with nearly $250 million in positive free cash flow reported for the first half of the year.