Key Takeaways
- • Citigroup leads a $2.45bn debt financing package for KKR's $5.7bn all-cash acquisition of Integer Holdings, positioning the deal as one of 2026's largest leveraged buyout financings reaching the US loan market.
- • The financing structure comprises a $2.1bn seven-year term loan and a $350m revolving credit facility, with Barclays, UBS, and Jefferies participating in the lending syndicate.
- • Integer shareholders will receive $127 per share, taking the medical device manufacturer private in an all-cash transaction announced earlier this week.
- • The debt package will be marketed to institutional leveraged loan investors in September, pending final terms negotiation.
- • This mandate reinforces Citigroup's prominence in healthcare buyout financing, following its lead role in the $8.75bn Hologic acquisition financing earlier in 2026; however, M&A-related loans represent only approximately 15% of new US leveraged loan volume year-to-date, with refinancing and repricing transactions dominating issuance.
Summary
Citigroup is structuring a $2.45bn debt financing package to support KKR's acquisition of Integer Holdings, a medical device manufacturer, according to Bloomberg reporting. The all-cash transaction values Integer at approximately $5.7bn, with shareholders receiving $127 per share. This financing package represents one of the largest leveraged buyout financings anticipated to reach the US loan market in 2026.
The debt structure consists of a $2.1bn seven-year term loan and a $350m revolving credit facility. Barclays, UBS, and Jefferies are expected to participate alongside Citigroup in the lending syndicate. The package will be marketed to institutional leveraged loan investors beginning in September, though final terms remain subject to negotiation and agreement among the lending parties.
The transaction underscores Citigroup's established position in the healthcare buyout financing market. Earlier in 2026, the bank led the $8.75bn financing package backing KKR's leveraged acquisition of Hologic, demonstrating consistent institutional confidence in the bank's ability to execute large-scale healthcare sector acquisitions. These two mandates position Citigroup as a lead arranger in sponsor-backed healthcare transactions during a period of gradual recovery in private equity M&A activity.
Despite the high-profile nature of major buyout financings, M&A-related loans remain a relatively modest proportion of overall US leveraged loan market activity. According to Bloomberg data, acquisition financings account for approximately 15% of new leveraged loan volume so far in 2026, with refinancing and repricing transactions continuing to dominate issuance. This composition reflects broader market dynamics where existing debt restructuring remains prioritized over new acquisition financing as market participants navigate ongoing rate and credit environment considerations.
The debt structure consists of a $2.1bn seven-year term loan and a $350m revolving credit facility. Barclays, UBS, and Jefferies are expected to participate alongside Citigroup in the lending syndicate. The package will be marketed to institutional leveraged loan investors beginning in September, though final terms remain subject to negotiation and agreement among the lending parties.
The transaction underscores Citigroup's established position in the healthcare buyout financing market. Earlier in 2026, the bank led the $8.75bn financing package backing KKR's leveraged acquisition of Hologic, demonstrating consistent institutional confidence in the bank's ability to execute large-scale healthcare sector acquisitions. These two mandates position Citigroup as a lead arranger in sponsor-backed healthcare transactions during a period of gradual recovery in private equity M&A activity.
Despite the high-profile nature of major buyout financings, M&A-related loans remain a relatively modest proportion of overall US leveraged loan market activity. According to Bloomberg data, acquisition financings account for approximately 15% of new leveraged loan volume so far in 2026, with refinancing and repricing transactions continuing to dominate issuance. This composition reflects broader market dynamics where existing debt restructuring remains prioritized over new acquisition financing as market participants navigate ongoing rate and credit environment considerations.
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