By Will Feuer


Cazoo Group said it has reached a deal to restructure its debt that includes issuing new shares and overhauling the online car retailer's board.

The company said its lenders have agreed to cancel $630 million of convertible notes in exchange for $200 million of new senior secured debt and newly issued stock in the company that will represent a 92% stake in Cazoo once the deal closes.

The agreement has support from noteholders representing more than 75% of its $630 million of convertible notes due 2027 and shareholders who own more than 25% of Cazoo's outstanding shares.

"While the transactions will dilute existing Cazoo shareholders, the transactions provide for potential future upside through the equity retained by existing shareholders and the issuance of new warrants to existing shareholders," the company said in a statement.

Once the deal closes, current Cazoo shareholders will retain a 8% stake in the company and will receive new warrants that will provide an opportunity to buy more shares, contingent on hitting certain valuation milestones.

Cazoo also said it plans to effect a reverse stock split, and will reduce the size of its board to seven members, with six chosen by lenders.


Write to Will Feuer at


(END) Dow Jones Newswires

September 20, 2023 07:25 ET (11:25 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Cazoo Charts.
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Cazoo Charts.