(Bloomberg) -- Banks are lining up approximately $2.35 billion in debt to support the proposed leveraged buyout of Patterson Companies Inc., a supplier of everything from dental equipment to drugs for pets and livestock.

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The financing is expected to be comprised of a $1.85 billion term loan led by UBS Group AG as well as approximately $500 million in high-yield bonds led by Citigroup Inc., according to people familiar with the transaction. Patient Square Capital, a private equity firm launched in 2020, is expected to use the funds for its $4.1 billion acquisition of the nearly 150-year-old animal health-care conglomerate.

A transaction could launch into the syndicated leveraged-loan and high-yield bond markets before the end of April, said the people, who requested anonymity to discuss a private matter. The break down of debt between bonds and loans could change, they added.

UBS, Citi and Wells Fargo & Co. are arranging the financing package, according to the people familiar. Spokespeople for the three banks declined to comment while representatives for Patterson and Patient Square didn’t respond to requests for comment.

The acquisition financing would help rouse what’s been a sleepy first quarter for leveraged capital markets, where deals have largely been skewed toward less lucrative refinancing or repricing of existing debt.

However, there are other signs of an uptick in acquisition-fueled debt. Lenders launched a €7.45 billion ($8 billion) deal to support Clayton Dubilier & Rice’s purchase of a stake in Sanofi SA’s consumer health division, Bloomberg News reported on Monday. And last week, energy drink maker Celsius Holdings Inc. raised $900 million to fund its acquisition of rival Alani Nutrition LLC.

Patterson agreed to be acquired by Patient Square in December, the company said in a press release at the time. The $4.1 billion value included committed debt financing from the banks and the refinancing of Patterson’s loans backed by outstanding invoices, according to the release.

The acquisition, which would make Patterson a private company, will be subject to a shareholder vote in April, the company said in a filing with the US Securities and Exchange Commission on Monday.

Headquartered in St. Paul, Minnesota, Patterson provides products, technology and services to dental and animal-health customers.

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(Updates with details of banks leading the two debt components in second paragraph.)

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