(Bloomberg) -- Jefferies Financial Group Inc. is in early discussions with investors on a roughly $1 billion financing package to support Ares Management Corp.’s potential buyout of industrial manufacturer Form Technologies from Partners Group Holding AG, according to people with knowledge of the matter.

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The financing is set to include a $650 million term loan and a $100 million revolver, along with $150 million of preferred equity and $125 million in common shares, said the people, who asked not to be identified discussing a private transaction. Proceeds will be used to refinance Form’s existing $633 million term loan at face value, the people added.

Representatives for Ares and Partners Group both declined to comment, while representatives for Jefferies and Form did not respond to requests for comment.

Ares has been exploring a potential buyout of Form, which has been weighing different options to deal with $900 million of debt maturing next year, Bloomberg News reported. The company’s existing debt stack was put in place as part of an amend-and-extend transaction in 2021.

Form’s first-lien term loan maturing in July 2025 was quoted on Tuesday afternoon at around 98 cents on the dollar, according to data compiled by Bloomberg.

Based in Charlotte, North Carolina, Form dates back to 1930s-founded company Gries Reproducer Corp. It engineers small, metal parts for cars, computers and other products, according to its website.

Partners Group agreed to acquire a controlling stake in Form’s predecessor Dynacast International in 2015 from Kenner & Co. Ares holds some of the company’s preferred equity, Bloomberg previously reported.

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