Carvana gets $3.28 billion commitment to acquire auction business

By Wendy Van Sickle

Columbus, Ohio, Feb. 25 – Carvana Co. entered on Feb. 24 into a commitment letter for $3,275,000,000 of debt facilities to finance the cash consideration for the company’s $2.2 billion purchase of the U.S. physical auction business of Adesa, Inc. from KAR Auction Services, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The financing is led by JPMorgan Chase Bank, NA and Citibank, NA.

The finance facilities will also be used to pay some costs and expenses related to the acquisition and to provide for working capital needs and general corporate purposes, including investing in improvements at facilities acquired as part of the deal.

Carvana is a Tempe, Ariz.-based eCommerce used car platform.

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