Banks launched the sale of about €1.95 billion-equivalent, or $2.28 billion, in junk bonds on May 4 to help finance Carlyle Group Inc. and Qatar Investment Authority's acquisition of BASF SE's auto paint and finishing division. [1]
The offering includes seven-year notes in both dollar and euro denominations, with the euro tranche pitched in the low 7% yield range and the dollar tranche in the low 8% range. [1]
The debt sale is part of the financing package for the BASF coatings business, one of the German chemical company's industrial units. The notes give investors exposure to a leveraged buyout tied to a large manufacturing asset, with the banks trying to place the paper in a market that has shown demand for higher-yield debt. [1]
The sale was launched on Monday, according to the source fact set, and the bonds are being marketed as seven-year paper in two currencies. [1]