09:44 AM EDT, 09/24/2024 (MT Newswires) -- (Updates with Sanofi ( SNY ) comment in last paragraph.)

Banks and private credit lenders are lining up more than 10 billion euros ($11.1 billion) of debt to back a buyout of Sanofi's ( SNY ) consumer health unit, Bloomberg reported, citing people familiar with the matter.

A group of banks signed funding commitments last weekend for 7.5 billion euros to 7.8 billion euros of senior debt to back acquisition bids, as well as a 1.2 billion euro revolving credit facility. Meanwhile, private credit lenders are lining up around 1.5 billion euros to 2 billion euros of junior debt to finance the buyout, the people told Bloomberg.

Clayton Dubilier & Rice, a New York-based buyout firm, is competing with French rival PAI Partners for the Sanofi ( SNY ) division, with bids due this month, according to the report.

"[A]s announced in October 2023, Sanofi ( SNY ) is reviewing potential separation scenarios for the Consumer Healthcare business with a transaction in the fourth quarter of 2024 at the earliest," a Sanofi ( SNY ) spokesperson said in an emailed statement. "Preparation for this potential separation project is on track with previously communicated timelines. No decision has been made yet and we expect to select the best option for Sanofi ( SNY ) and its stakeholders in the next few months."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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