(Bloomberg) -- Athenahealth Group Inc. and McAfee Corp. are kicking off the week with jumbo junk-debt sales to help finance leveraged buyouts as companies attempt to clinch deals ahead of Federal Reserve interest-rate hikes.
Athenaheath is looking to sell a $2.5 billion high-yield bond, as part of one of the largest sub-investment-grade offerings to hit the U.S. credit market this year, according to a person with knowledge of the matter who declined to comment because the details are private.
McAfee, meanwhile, is in the market for what’s expected to be a $10 billion jumbo financing package, a separate person said. A lender call is scheduled today at 11 a.m. Eastern time for its two-part $5.66 billion leveraged-loan sale to help fund its take-private deal. Commitments are due Feb. 2 and JPMorgan Chase and Co. is the lead bookrunner.
An investor group led by Advent International Corp., Permira Advisers and others agreed in November to buy out McAfee in a deal valuing the company at more than $14 billion including debt.
An investor call for the offering of Athenahealth’s eight-year senior notes will take place Monday at 12 p.m. in New York. Goldman Sachs Group Inc., the lead bookrunner on the deal, will continue marketing through Wednesday, the person added. Proceeds, along with a $6.75 billion leveraged loan sale led by JPMorgan, will help fund the health information technology company’s leveraged buyout by a group led by Hellman & Friedman LLC and Bain Capital.
Bankers are readying more than $100 billion in massive debt packages earmarked for buyouts as borrowers rush to lock in low borrowing costs before interest rates rise.
Read more: Banks Prep a $100 Billion Debt Bonanza in Year of Mega Deals
The buyers for Athenahealth, who also include Veritas Capital and Evergreen Coast Capital, are paying about $17 billion for Athenahealth, which helps doctors and hospitals collect money from health insurers and the government for the services they provide. The deal is expected to close in the first quarter of 2022.
(Updates with details on McAfee deal throughout)
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