08:52 AM EDT, 04/12/2024 (MT Newswires) -- (Updates with a response from Carmax ( KMX ) in the last paragraph.)

CarMax ( KMX ) launched a bid to raise $1.25 billion in a sale of bonds after the company's Q4 earnings fell short of analyst expectations, Bloomberg News reported on Thursday, citing a person with knowledge of the matter.

The auto retailer plans to sell asset-backed securities in an offering that could be increased to $1.6 billion, Bloomberg reported, with Mitsubishi UFJ Financial Group structuring the deal.

The offering could be announced next week.

CarMax ( KMX ) declined to comment.

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