Lloyds Banking Group declined to comment on the situation, while officials at Bain Capital's London office could not be immediately reached for comment. The deal was first reported in the Financial Times.
Lloyds has been steadily selling off non-core assets as part of a restructuring to strengthen its financial position, and it is also looking to sell a $10bn portfolio of shipping loans, industry sources have said.
Sankaty Advisors LLC is Bain Capital's credit affiliate. The company's website states that it has around $15.5bn in assets under management.