Private credit funds competing with banks to finance Carlyle’s potential buyout of some units of Medtronic Plc have offered a partial payment-in-kind feature in an effort to win the deal, Bloomberg News reported.

The private lenders are looking to provide a roughly $2.6 billion unitranche loan, according to Bloomberg, and they are offering the option to PIK a portion of the interest expense, meaning it would be paid with more debt. The ability to offer PIK debt is an advantage for private credit funds as they compete with Wall Street banks to finance deals.