Bank of America and UBS are leading a $3.1bn debt package to finance Lone Star Funds’ proposed take-private of Hillenbrand, as banks continue to commit to larger leveraged buyout financings amid a pick-up in cross-border M&A, Bloomberg reports.

The underwriting banks are preparing a mix of leveraged loans and high-yield bonds in both dollars and euros, with syndication to institutional investors expected early next year. The move adds to a wave of major bank-led financings returning to the market as deal activity recovers.

The Hillenbrand package includes a $1.885bn term loan, a $500m senior secured bridge facility, a $400m revolving credit facility, and a $350m senior secured letter of credit facility, according to a public filing.

Banks have stepped up their underwriting of large buyouts in recent months. The $20bn financing for the Electronic Arts acquisition is set to be the largest on record, while a $7.9bn package for Clayton Dubilier & Rice’s acquisition of Sealed Air was recently announced.

Lone Star agreed in October to acquire Hillenbrand for $32 per share in cash, valuing the equipment manufacturer at about $3.8bn on an enterprise basis.

Spokespeople for Bank of America and UBS declined to comment. Representatives for Lone Star and Hillenbrand did not respond to requests for comment.

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