KKR is leaning towards banks to provide the financing for its proposed acquisition of a 50% stake in Cotiviti, partly thanks to a favorable climate for primary leveraged loan issuance which has helped recent deals price tighter, according to 9fin sources.

The private equity firm has run a dual track process, taking proposals from banks and direct lenders to provide roughly $5bn of debt to fund the deal. The sponsor recently asked its potential financing partners to refresh their pricing proposals in light of strong markets, sources said.