(Bloomberg) -- Citigroup Inc. and Wells Fargo & Co. are preparing a $2 billion debt package to support Berry Global Group Inc.’s spinoff of the majority of its health, hygiene and specialties business with Glatfelter Corp., according to a person with knowledge of the matter. 

The banks, led by Citigroup, are preparing a $2 billion package composed of a leveraged loan and asset-based loan, the person said, asking not to be named because the information is private. The debt deal is expected to launch in the third quarter and pricing terms have yet to be determined, the person said.

Citigroup and Wells Fargo declined to comment. Berry and Glatfelter didn’t respond to requests for comment. 

The spinoff is expected to close in the second half of the year and the new, combined company will trade under a new name and publicly listed ticker, according to a company statement. That transaction will also include Berry’s global nonwoven and films businesses, it said. Berry will retain some of its businesses and the company will receive about $1 billion in cash that to pay down existing debt, a presentation said.

Berry and Glatfelter announced the transaction in February after the former began reviewing options for the business segment last year. Berry shareholders will own about 90% of the new company while Glatfelter’s will take the remaining 10%, according to a company presentation. 

--With assistance from Paula Seligson.

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