Carvana Preps $479 Million Bond Backed by Subprime Auto Loans
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Carvana Co. is preparing to sell $479 million in bonds backed by subprime auto loans, its first offering of asset-backed bonds that aren’t from prime borrowers in over a year.
The online used car dealer has begun marketing the bonds to potential investors and plans to finalize the sale early next week, according to preliminary deal information provided by a person with knowledge of the matter. BNP Paribas SA is the lead underwriter on the debt offering, which is also being run by Deutsche Bank AG and Wells Fargo & Co.