KKR seeks to raise $1.5bn in debt for Capsugel LBO

NEW YORK: Kohlberg Kravis Roberts & Co is seeking to raise a total of $1.5 billion in debt to fund its $2.38 billion buyout of Capsugel from Pfizer, several sources familiar with the transaction told Thomson Reuters LPC Thursday.

UBS, which is left lead on the loan, will begin syndication of a $1 billion term loan within the next month, sources said. Alongside the loan, Barclays Capital will lead a high yield bond of at least $500 million, sources noted.

Deutsche Bank, KKR Capital Markets and Mizuho Corporate Bank will be on the right of the financing efforts.

Pfizer agreed to sell its hard capsule business to KKR on Monday.

Details on tenor and price talk are expected to emerge in the coming days, according to sources.