Sycamore Partners is planning to finance its buyout of department-store chain Belk Inc. in part with a $1.775 billion term loan, according to a person with knowledge of the deal.

Timing is still fluid on when the Morgan Stanley-led deal may be marketed to investors, said the person, who asked not to be identified because the financing details are private. A second-lien loan backing the buyout was pre-placed, the person said.

Belk, a 127-year-old department-store chain concentrated in the southern U.S., said Aug. 24 that it was being bought by New York-based private-equity firm Sycamore in a deal that values the company at about $3 billion. The $2.7 billion cash purchase is expected to be completed in the fourth quarter, according to the statement on the buyout agreement.

Mary Claire Delaney, a spokeswoman for Morgan Stanley, and Michael Freitag, a spokesman for Sycamore who works at Joele Frank, Wilkinson Brimmer Katcher, declined to comment. Jessica Graham, a spokeswoman for Belk, didn’t immediately return a phone call seeking comment.

Belk, based in Charlotte, North Carolina, has debt-financing commitments from Morgan Stanley, Bank of America Corp., Credit Suisse Group AG, Deutsche Bank AG, Jefferies Group LLC, Nomura Holdings Inc., Royal Bank of Canada, Wells Fargo & Co. and GSO Capital Partners, according to a regulatory filing last month. GSO is the credit unit of Blackstone Group LP, the New York-based private-equity firm.

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