A banking syndicate led by Citigroup, Barclays, Bank of America, and RBC Capital Markets is providing $12.25bn in debt financing to support Blackstone and TPG’s $18.3bn acquisition of U.S. medical device and diagnostics company Hologic, Bloomberg reports.

The financing structure includes $9.5bn in first-lien term loans, $2bn in second-lien debt, and a $750m revolving credit facility, according to a regulatory filing. Citigroup will lead the dollar-denominated tranche, while Barclays and Bank of America are managing the euro tranche. RBC is overseeing the second-lien portion, with Japan’s SMBC also participating.

Blackstone and TPG have agreed to pay $76 per share in cash for Hologic, with an additional $3 per share linked to future business performance targets. The deal, which carries a termination fee of up to $900m, is not contingent on financing.

The Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC will join the transaction as minority investors, deepening their exposure to the global healthcare sector.

The Hologic acquisition highlights renewed momentum in the large-cap leveraged buyout market following a prolonged slowdown. It follows JPMorgan’s $20bn debt commitment to back the $55bn buyout of Electronic Arts, the largest leveraged buyout on record.

Blackstone and TPG’s acquisition of Hologic continues the trend of private equity firms pursuing healthcare assets with stable cash flows and defensive characteristics, particularly in diagnostics and women’s health.

Representatives for Blackstone, TPG, Citigroup, Barclays, Bank of America, and Hologic declined to comment.

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