TOKYO, April 16 (Reuters) - Bain Capital has proposed an

initial public offering (IPO) of Japan's Kioxia Holdings as part

of a plan to allow the money-losing chipmaker to refinance a

$5.8 billion loan coming due in June, according to a person

familiar with the matter.

Bain and Kioxia met with a group of banks including Sumitomo

Mitsui, Mizuho and Mitsubishi UFJ on

Monday after the lenders urged Kioxia to come up with a

recapitalisation plan because it looks likely to run afoul of

the terms of a 900 billion yen ($5.8 billion) syndicated loan,

the person said.

Formerly Toshiba Memory, Kioxia was acquired by a Bain-led

group in a $18 billion carve-out in 2018. The maker of memory

chips is expected to have posted a loss for the year that ended

last month, according to the person. That would mark its second

straight annual loss and push its net assets below the roughly

500 billion yen required under the terms of the loan, the person

said.

Under the plan presented to the banks, Kioxia expects to

return to profit in the year to March 2025, seeing earnings of

around 130 billion yen.

The person declined to be identified because the information

has not been made public. Details of Kioxia's finances were

confirmed in a review of the plan presented to banks by Reuters.

Kioxia, Mizuho and Mitsubishi UFJ declined to comment.

Sumitomo Mitsui did not immediately reply to a request for

comment. Bain could not immediately be reached for comment.

($1 = 154.5300 yen)