JPMorgan Chase & Co. and Wells Fargo & Co. are providing a $1 billion debt package to support the management buyout of Select Medical Holdings, according to sources familiar with the transaction. The hospital operator agreed Monday to be acquired by a consortium at a $3.9 billion enterprise value, with the banks rolling existing debt into a revolving credit facility.

Select Medical operates 104 critical illness recovery hospitals, 38 rehabilitation hospitals, and 1,917 outpatient rehabilitation clinics. The financing commitment comes as banks prepare for one of the strongest years for deal-related debt sales this decade. Catherine O'Donnell, head of leveraged finance for North America at JPMorgan, noted that banks' "underwritten M&A volume is at $87 billion" for 2026.

The loan commitment follows a broader trend of investors embracing new debt sales to fund acquisitions despite rising geopolitical tensions and concerns over the $1.8 trillion private credit market. Next week, JPMorgan is set to begin selling syndicated debt for Electronic Arts Inc.'s record leveraged buyout, with financing expected to total about $20 billion.