The banks financing Kohlberg Kravis Roberts and TPG Capital's buyout of US power company TXU are expected to start syndicating a portion of the $24.5bn (€17.4bn) bank loans supporting the acquisition as early as next week, providing the latest test of the resilience of the leveraged finance market after months of paralysis.

The six underwriting banks, led by Citigroup and Credit Suisse, are initially aiming to syndicate or sell down a minimum of $5bn of the $24.5bn senior secured bank loans as part of total debt financing package that also includes $11.25bn of unsecured bridge loans, according to investors.