Don’t miss out on news you won’t find anywhere else — get The Memo US and The Memo Europe in your inbox every two weeks.

Early price whispers are circulating on an expected $1.1bn debt financing from JP Morgan to fund HNI Corporation’s acquisition of Steelcase, according to 9fin sources.

Early price talk on a potential term loan is being floated in the mid to low-200bps area, sources added. Steelcase is rated Ba1/BB+ at the corporate family level, while HNI has a BB+ rating from S&P.

At closing, the combined company is expected to have $1.7bn in secured credit facilities in place with net debt to EBITDA leverage of 2.1x, according to marketing materials. Pro forma adjusted EBITDA is about $745m based on trailing 12-month financials, including synergies.