Blackstone (BX) is looking to secure roughly $2.6 billion in debt financing to support the merger of two power grid equipment suppliers, Bloomberg reported Thursday, citing people familiar with the matter.

According to the report, banks led by Barclays (BCS) are marketing a package of about $2 billion in first-lien debt and a $560 million second-lien loan.

The proceeds will be used to recapitalize MacLean Power Systems, acquired from Centerbridge in December, and merge it with Blackstone-owned Power Grid Components, the report said.

The financing could launch in the leveraged loan market later this month, Bloomberg added.

Shares of Blackstone rose 1.1% in recent trading.

Blackstone didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 155.25, Change: +1.66, Percent Change: +1.08