(Bloomberg) -- Wall Street banks are planning to launch a $1.9 billion debt sale next week to support Apollo Global Management Inc.’s acquisition of Arconic Corp., according to people with knowledge of the matter. 

JPMorgan Chase & Co. is leading the financing package’s expected $1 billion leveraged loan portion while Wells Fargo & Co. will manage a $900 million bond sale, said the people, who asked not to be identified as the details are private. 

The deal could begin marketing as soon as Monday, though the exact timing could change, they added. The package also includes an unfunded $1.2 billion asset-backed lending facility, according to a different person with knowledge of the matter. 

Banks are seizing on a rally in US high-yield bonds and leveraged loans, fueled by low supply, sustained demand and a risk-on tone across broader markets. The latest inflation data has also fueled expectations that the Federal Reserve may soon end its rate hikes. 

Prices in the leveraged loan market have steadily risen amid this backdrop — hitting 11-month highs this week — and returns in the asset class have topped 7% so far this year. 

Read more: Leveraged Loan Rally Suggests Any Coming Recession Will Be Mild 

Buyout firm Apollo agreed to acquire Pittsburgh-based, aluminum-products company Arconic for about $3 billion in May. Arconic manufactures aluminum sheets and plates for companies across the aerospace, automotive and commercial transportation markets. 

In addition to $3.1 billion in aggregate debt financing provided by financial institutions, investors including Apollo committed to provide $725 million of senior unsecured notes, according to a May filing.

JPMorgan and Apollo declined to comment. Wells Fargo and Arconic did not immediately respond to requests for comment.

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