By Carol Dean and Michael Wilson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Care U.K. is considering taking the high-yield bond route to refinance part of the GBP210 million of senior debt that backed Bridgepoint's buyout of the healthcare company in March this year, said people familiar with the situation Tuesday. The potential bond offering is seen as a test of high-yield investors' appetite to buy into a leveraged buyout situation shortly after the company has been acquired by private equity. If the deal goes ahead and is well received, it opens up the possibility of other leveraged buyout companies seeking refinancing in the bond market, the people said. Nevertheless, Care U.K. has yet to make a decision on whether a substantial part of the senior debt will be refinanced in the bond market, one of the people said. However, another person said high-yield investors have recently been approached about a possible bond to gauge their appetite for such an offering. "If the feedback isn't what they want to hear, the debt will be syndicated [by the lending banks]", this person added. "But the company is in an attractive sector [healthcare] and the deal may well find favour." The bond size is likely to be around GBP150 million to facilitate liquidity in the secondary market, one of the people said. The bond will most likely refinance the term loan portion, A and B tranches, of the financing. The remaining debt comprises working capital facilities, this person added. The senior debt is being provided by a group of banks consisting of Bank of Ireland (BIR.DB), BNP Paribas SA (BNPQY), HSBC Holdings (HBC), ING groep NV(ING), Lloyds Banking Group (LLOY.LN) and Societe Generale (GLE.FR). A subset of these banks will be mandated to arrange the bond should the company choose to take that route, this person said. Bridgepoint acquired the business earlier this year for around GBP420 million. Care UK is a provider of health and social care services, working with local authorities and the U.K.'s National Health System to provide a range of outsourced services, according to Bridgepoint's website. Care UK wasn't immediately available for comment on the matter. -By Carol Dean and Michael Wilson, Dow Jones Newswires; 44 20 7842 9306; carol.dean@dowjones.com (END) Dow Jones Newswires July 06, 2010 09:50 ET (13:50 GMT)