Textile company Lycra Co. is sounding out investors on a private deal that would help it refinance the most senior part of its debt, according to people familiar with the matter. 

The firm, which makes form-fitting elastic material used for yoga and cycling clothing, has been approaching direct lenders and opportunistic funds to raise about $350 million, some of the people said, asking not to be identified discussing private information. 

The funds would help refinance a term loan due February next year and €300 million ($325 million) of notes maturing in April, the people said. The company is also reviewing options to address about $700 million of riskier bonds due the following month, they said. The company is getting financial advice from bankers at Houlihan Lokey Inc. to address that maturity wall, Bloomberg News reported earlier this month.

A representative for Lycra didn’t respond to a request for comment. 

Lycra carried out a so-called drop-down last year, which entailed moving $75 million worth of intellectual property assets away from the reach of the existing bondholders to unrestricted subsidiaries. It then used those assets as collateral to raise euro-denominated notes, now indicated at around 82 cents on the euro, according to data compiled by Bloomberg. 

The dollar notes, issued via vehicle Eagle Intermediate Global Holding BV, have a weaker security package and are quoted at around 57 cents on the dollar, the data show.

Lycra is owned by a group of lenders-turned-shareholders including China Everbright Limited, Lindeman Asia, Lindeman Partners Asset Management and Tor Investment Management, which took over the company following a debt restructuring in 2022.