(Bloomberg) -- Carvana Co. kicked off debt exchanges as part of its sweeping restructuring plan that will help it cut around $1.2 billion of debt. 

The company is offering to swap bonds due between 2027 and 2030 for new secured notes that pay interest in cash or in kind. It’s also seeking to repurchase its 5.625% notes due 2025 for 85 cents on the dollar, according to a statement. 

The online used car seller company formally announced the debt exchange offers Wednesday morning after reaching a deal with with a group of lenders including Apollo Global Management Inc. and Pacific Investment Management Co. last month. Holders of more than 90% of the company’s unsecured debt have already agreed to participate in the swap. 

Under the deal, Carvana expects to lower its cash interest expense by $430 million annually for the next two years. Interest on the company’s new notes, which mature between 2028 and 2031, can be paid in-kind for up to two years. 

The deadline to participate in the exchange is 5 p.m. New York time on Aug. 30. 

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