Banks Kick Off Sale of Junk Bonds Backing BASF Coatings Deal

Banks have kicked off the sale of roughly €1.95 billion-equivalent ($2.28 billion) of junk bonds to help finance BASF SE’s auto paint and finishing division acquisition by Carlyle Group Inc. and partner Qatar Investment Authority.

The offering includes dollar- and euro-denominated seven-year notes, according to a person with direct knowledge of the matter. The euro tranche is being pitched in the low 7% range and the dollar part in the low 8% range, the person said, asking not to be named because the discussions are private.