Carvana plans eight-year senior notes for auction-business purchase

By Wendy Van Sickle

Columbus, Ohio, April 20 – Carvana Co. is planning to offer a new series of senior notes due 2030 and intends to use proceeds along with those of a planned $1 billion offering of perpetual preferred stock to finance its planned acquisition of the U.S.-based physical auction business of Adesa, Inc. from KAR Auction Services, Inc., according to a news release and an 8-K filing with the Securities and Exchange Commission.

The offering of senior notes is outlined as up to $2.275 billion.

The aggregate purchase price will be approximately $2.2 billion.

Proceeds from the notes will be used for the acquisition, for working capital, capital expenditures and other general corporate purposes.

Carvana also announced a public offering of $1 billion of class A common stock on Wednesday, with proceeds to be used for general corporate purposes.

The online car retailer is based in Tempe, Ariz.

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