Ares, HPS Line Up $3 Billion Debt for Baxter Unit Bid (1)

A group of direct lenders including Ares Management Corp. and HPS Investment Partnersis providing a $3 billion credit facility to finance Carlyle Group Inc.’s potential purchase of Baxter International Inc.’s kidney-care division, according to people with knowledge of the matter.

The debt package would include a $2.5 billion unitranche loan and a $450 million revolver, said the people, who asked not to be identified because terms are not public.

Oaktree Capital Management is also providing some of the financing, one of the people said. There is an allowance in the financing agreement for smaller positions to go ...