BASF Coatings GmbH has completed its $1.2 billion and €1 billion term loan B financing tight to talk at S+350 and E+375, respectively. Both tranches have a 0% floor and an OID of 99.5. Ahead of pricing, the euro tranche was increased from €750 million, and the dollar tranche was downsized from $1.4 billion. Goldman Sachs is the sole physical bookrunner on the dollars and is a joint physical bookrunner on the euros with HSBC.
Proceeds support Carlyle’s €7.7 billion acquisition of BASF’s automotive OEM coatings, automotive refinish coatings and surface treatment businesses. Carlyle is buying the business in conjunction with the Qatar Investment Authority; BASF will retain a 40% stake. There is additional financing from a €1.95 billion cross-border bond deal. Pro forma leverage is 5.1x total and 4.7x net, based on pro-forma adjusted EBITDA of €880 million for 2025.
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