Carvana paper mostly weathers storm, equity sinks; Rite Aid lower after tender

By Cristal Cody

Tupelo, Miss., Dec. 7 – Carvana Co. moved into the spotlight on Wednesday as its stock plummeted in the wake of restructuring talk and a target price cut, while the company’s bonds weathered the day down only about 1 to 2 points.

“Right this second, I see better buyers at these levels,” a source said. “Not a lot of sellers.”

Carvana’s 10¼% senior notes due 2030 (Caa2/CCC) saw the heaviest trading out of the company’s capital stack on close to $30 million of volume.

The issue went out about 1 point lower at 41 bid, 42 offered, a source said.

Carvana’s stock plunged more than 40% as restructuring talk grew on news reports and its stock price was cut to $1 by Wedbush Securities analyst Seth Basham.

Since a majority of holders were reported to have signed on to cooperate in a restructuring, those securities probably were not trading on Wednesday, a market source said.

Rite Aid Corp.’s paper mostly declined about 2 points to 3 points following the completion of the company’s tender offer for the 7½% senior secured notes due 2025.

The 8% senior secured notes due 2026 (B3/CCC-/CCC) were down 2 points at 59 bid, 60 offered on nearly $9 million of trading, a source said.

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