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,
-6.76%
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,
-1.19%
has fallen 10%.