Banks are preparing to launch the sale of around €4bn of acquisition financing to support Carlyle Inc’s buyout of the coatings business of BASF SE, according to a report by Bloomberg citing people familiar with the matter. The package is expected to include dollar- and euro-denominated leveraged loans alongside euro senior secured notes, with syndication targeted for late March or early April.
Bank of America and Goldman Sachs are reportedly among the lenders arranging the financing. Carlyle and its partner, Qatar Investment Authority, agreed last year to carve out BASF’s coatings unit at an enterprise value of €7.7bn, with BASF retaining a 40% stake in the business.
The transaction comes as Europe’s chemicals sector remains under pressure from higher costs and increased competition from imports. Carlyle-backed Nouryon last year pulled a planned dual-currency refinancing after encountering investor resistance.
The BASF Coatings financing is set to join a growing pipeline of buyout debt awaiting syndication. Banks are also lining up funding for Stonepeak Partners LP’s acquisition of BP Plc’s Castrol unit, alongside sizeable packages backing deals involving Electronic Arts Inc, Clayton Dubilier & Rice’s buyout of Sealed Air Corp, and the recent Hologic Inc transaction, as appetite for leveraged acquisition debt remains firm at the start of 2026.
