Article
Carlyle Lines Up 9 Banks for BASF Coatings Buyout Crossborder Loan, Bond Financing
Private equity firm Carlyle has lined up a group of nine banks for a debt financing package to back its €7.7 billion buyout of German chemical company BASF’s coatings business, according to sources.
Bank of America, Barclays, Citi, HSBC, Goldman Sachs, Jefferies, Santander, SMBC and Wells Fargo are the banks lined up to provide the all-senior financing package, according to sources. More banks could be added to the lineup, the sources added.
Banks were pitching debt packages of up to €3.6 billion during the auction, which was expected to comprise both leveraged loans and high-yield bonds denominated in euros and dollars, as reported. The unit is projecting adjusted EBITDA of €712 million for 2025, implying leverage of around 5x, as reported.
BASF announced on Oct. 10 it entered into an agreement to sell its coatings division, BASF Coatings, to Carlyle in partnership with Qatar Investment Authority for €7.7 billion. The transaction is expected to close in the second quarter of 2026.
The enterprise value for BASF Coatings’ transaction, combined with the previously closed divestiture of the decorative paints business, values it at an enterprise value of €8.7 billion, the release said. This total implies a 2024 EV/EBITDA multiple before special items of approximately 13x.
Carlyle, Citi, Santander, Wells Fargo and Barclays declined to comment. Bank of America, HSBC, Goldman Sachs, Jefferies and SMBC did not respond to requests for comment.
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