Private Credit Looks to Fund $4.5 Billion for Walgreens Buyout

Private credit lenders are in talks to provide about $4.5 billion of debt to fund Sycamore Partners’ potential buyout of Walgreens Boots Alliance Inc. as part of a plan to split up the pharmacy retailer into separate businesses, according to a person with knowledge of the matter.

HPS Investment Partners and Ares Management Corp. are among lenders vying to finance what would be one of the largest leveraged buyout debt deals to hit the market in more than a decade, said the person, who asked not to be identified discussing confidential information.

Sycamore’s acquisition would split up Walgreens’ business ...