(Bloomberg) -- Italian financial services specialist DoValue SpA is close to an accord with a pool of banks for about €450 million ($489 million) in credit facilities, a key step to finalize a combination with Elliott Investment Management’s Gardant SpA servicing unit.

DoValue is in late-stage talks with lenders about the funding, which will include a revolving credit facility of as much as €100 million, people with knowledge of the matter said. The firm plans to use the funds to finance the cash part of Gardant’s purchase price and repay a bond due next year, the people said, asking to not be named as the process is not public.

Shares of DoValue rose as much as 4.6%, the most in two weeks, and its bonds due in 2025 gained 1.5 cents to around 98, according to pricing compiled by Bloomberg. DoValue has €565 million of bonds due in the next two years, and the bank facilities are considered crucial to finalize the transaction.

DoValue is in exclusive talks with Elliott for an acquisition of Gardant in a cash and share deal, as Chief Executive Officer Manuela Franchi seeks to diversify revenue and boost efficiency. As part of the deal, Elliott would become DoValue’s second-biggest shareholder, and participate in a subsequent rights offer that would be subscribed by the firm’s main owners.

That rights issue will be underwritten by some of the lenders providing the financing, and the funds would be drawn down once DoValue embarks on the share sale, the people said, adding that the moves are expected after September with the finalization of the deal.

A spokesperson for DoValue declined to comment.

DoValue is Italy’s biggest manager of credit portfolios and real estate assets deriving from NPLs. The industry is consolidating after banks cleaned up their balance sheets, leaving servicing companies with fewer incoming loans and existing portfolios that skewed more toward older, less-profitable credits.

(Updates with share, bond reaction in third paragraph.)

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