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Wells Fargo, Goldman Sachs to Lead USD-Denominated High-Yield Bond, Loan for BASF Coatings’ €7.7B Acquisition by Carlyle
BASF Coatings’ €4.5 billion cross-border debt financing package financing its acquisition by Carlyle is expected to include a Wells Fargo-led U.S. dollar high-yield bond and a Goldman Sachs-led U.S. dollar leveraged loan, according to sources.
The high-yield bond and loan offering, which will also include euro-denominated debt, backing Caryle’s €7.7 billion acquisition of BASF Coatings is expected to launch imminently after premarketing for the last two weeks, sources said, with an order book building. Sources added that the banks were waiting on audited financial statements to be reported before launching and cautioned that terms were subject to change.
Initial price talk on the U.S. dollar high-yield bond is coming at 8%, as reported. The cross-border deal will likely have to come with a deeply discounted OID due to market volatility, as reported.
Bank of America, Barclays, Citi, HSBC, Jefferies, Santander and SMBC are among the other banks on the debt financing package.
BASF Coatings’ deal is considered to be a particularly difficult underwritten credit to bring to the primary market, participants said last week, since conditions changed dramatically from when it was initially signed, including rising oil prices and geopolitical dynamics affecting chemical producers.
BASF announced in October 2025 that it had entered into an agreement to sell its coatings division, BASF Coatings, to Carlyle in partnership with Qatar Investment Authority. The transaction is expected to close in the second quarter of 2026.
Octus has concluded a financial analysis of BASF Coatings, which can be found HERE.
Wells Fargo, Goldman Sachs and Carlyle declined to comment.
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