Carvana stocks up by 40%

COLUMBIA, S.C. (CNN)—Shares of Carvana closed the trading day up by more than 40% Wednesday.

This comes after the online used-car seller known for its car-vending machines, reached a debt restructuring agreement.

The Phoenix-based company says it will reduce its outstanding debt by more than $1.2 billion.

The massive debt reduction deal should sharply reduce their online interest expenses.

Carvana has been struggling financially in recent months because of declining used car prices.

A relatively new player in the used car field, it’s lost money most quarters since going public in 2017 as it aimed for sales growth rather than short-term profitability.