Why Carvana Shares Plunged 11% Today
Shares of Carvana (NYSE: CVNA) fell by as much as 11% in early trading on Thursday after the online used car dealer announced that it had finalized a debt deal. Shares recovered slightly as the session progressed, but were still down 8.4% as of 11:50 a.m. ET.
On Monday, the company announced plans for a $2.275 billion debt offering and $1 billion preferred stock sale to fund its $2.2 billion acquisition of ADESA, which was announced in February. On Thursday, though, it announced that it had abandoned the preferred stock offering and increased the size of the debt sale to $3.275 billion. That debt ultimately sold with an interest rate of 10.25% after the market closed Wednesday.
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Source Fool.com
