A group of lenders led by Barclays Plc is preparing a €2.4 billion ($2.8 billion) financing package to support Lone Star Funds' acquisition of industrial products manufacturer Conti Tech, according to people with knowledge of the matter. The financing is expected to include a €1.9 billion term loan and a €500 million high-yield bond, said the people, who requested anonymity because the discussions are private. The term loan will be sold to investors in the leveraged loan market in US dollars and euros, and the transaction could launch as soon as this month, they said.

Lone Star agreed in July to acquire Conti Tech from Germany's Continental AG for €4 billion.