Carvana debt-for-equity swap would be ‘significant positive,’ says Opco

Bloomberg over the weekend reported that creditors which own upward of 90% of Carvana (CVNA) bonds are pitching the company a debt-for-equity swap, Oppenheimer analyst Brian Nagel the analyst tells investors in a research note. The firm is hard-pressed to envision a successful, sizable debt-for-equity swap at Carvana not proving a "significant positive" for the shares. Its conversations with investors suggest the market is very concerned with debt and potential liquidity issues at the company. However, Oppenheimer continues to recommend CarMax (KMX) as the best way for investors to play used car retailing.