Apollo Throws Struggling Carvana $1.6 Billion Junk-Bond Lifeline

  • Firm offered to buy roughly half of debt deal at 10.25%
  • Bond offering was restructured and delayed amid weak demand

A Carvana Vending Machine location in Novi, Michigan.

Photographer: Emily Elconin/Bloomberg
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Apollo Global Management Inc. tossed a lifeline to Carvana Co. by offering to buy roughly half of a struggling junk-bond sale that will help the used-car retailer fund an acquisition and make new investments.

The firm submitted a $1.6 billion order anchoring Carvana’s offering of eight-year bonds at a yield of 10.25%Bloomberg Terminal, according to people with knowledge of the matter who asked not to be identified because they’re not authorized to speak publicly.

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Apollo Throws Struggling Carvana $1.6 Billion Junk-Bond Lifeline