Wall Street banks including JPMorgan Chase and UBS have begun pitching a $4.25bn debt financing package to investors to support private equity firm Sycamore Partners’ buyout of UK pharmacy chain Boots.

The debt offering, split between term loans and secured bonds in multiple currencies, forms part of the broader leveraged buyout of Walgreens Boots Alliance, which includes around $20bn in debt and $2.5bn in equity.

The financing is being pre-marketed in tranches: $2.25bn in term loans and $2bn in secured notes, with pricing discussions indicating relatively generous spreads amid a hot junk debt market. The loans, denominated in US dollars, euros, and British pounds, are reportedly attracting strong investor interest due to the scarcity of large new-money deals.