Carvana starts roadshow for $2.28 billion eight-year senior notes; initial guidance 10½% area

By Paul A. Harris

Portland, Ore., April 25 – Carvana Co. took that wraps off of a big, well-telegraphed acquisition financing junk bond deal on Monday, according to market sources.

The offering features a single $2.275 billion tranche of eight-year senior notes (Caa2/CCC+), in the market with 10% to 10½% initial guidance, according to a sellside source.

Dealers began canvassing the market with the Carvana offering mid-to-late last week, and it could price as early as Tuesday, sources say.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.

The Rule 144A and Regulation S notes come with three years of call protection.

The Tempe, Ariz.-based online car retailer plans to use the proceeds plus proceeds from its $1 billion offering of series A perpetual preferred stock to finance the $2.2 billion acquisition of the U.S. physical auction business of Adesa, Inc. from KAR Auction Services, Inc., as well as for working capital, capital expenditures and other general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.