Carvana to offer $2.275 billion in 8-year junk bonds to fund acquisition of Adesa’s auction business

Car selling platform Carvana Co. CVNA, -11.38% said Monday it is offering $2.275 billion in senior unsecured high-yield bonds that mature in 2030. The company will use the proceeds, along with $1 billion of preferred stock, to fund the acquisition of U.S. physical auction business of ADESA, Inc. from KAR Auction Services, Inc. for approximately $2.2 billion. Any remaining money will be used for general corporate purposes and working capital. Shares were down 4% premarket and have fallen 64% in the year to date, while the S&P 500 SPX, -1.80% has fallen 10%.

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