The financing will comprise US$2.1 billion in funded debt in the form of a seven-year term loan and a US$350 million revolving credit facility that will be unfunded, said the people, who requested anonymity because the negotiations are private. In addition to Citigroup, Barclays Plc, UBS Group AG and Jefferies Financial Group Inc will also provide debt for the transaction.

A deal to sell the debt to investors in the US leveraged loan market could launch in September, they added, noting terms of the transaction are still under discussion and could change.

A representative for KKR declined to comment while Citigroup and Integer didn’t immediately respond to a request for comment.

KKR agreed to buy Integer on Monday in an all-cash deal valuing the company at about US$5.7 billion. Integer stockholders will receive US$127 per share under the terms of the deal that would take it private, the companies said.

For Citigroup, it’s the second time this year the US bank has nabbed a lead role for a medical-device developer. In January, the bank led an US$8.75 billion debt financing to support the roughly US$18 billion buyout of Hologic Inc, one of the largest leveraged buyouts this year.

That deal comprised a US$7.25 billion leveraged loan that was priced at 2.25 percentage points over the US benchmark and a US$1.25 billion term loan A, Bloomberg News reported in January.

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