Monday is the day bankers expect to start selling debt tied to the $26 billion buyout of

First Data

(FDC) - Get Report

.

According to

Bloomberg

, bankers led by Credit Suisse and Citi will meet Monday at the Pierre Hotel in New York to sort out the details of the high-visibility financing effort.

The First Data deal been closely watched on Wall Street, as banks and brokerages seek buyers for billions of dollars in buyout loans. The debt has been a hard sell so far, as investors have grown skittish about the loose underwriting that supported the buyout binge of the past few years. Now the question is how quickly this paper will find buyers -- and what kind of losses the banks will be forced to take.

As first

reported by

TheStreet.com

, bank executives will start by trying to find buyers for a small slug of bank loans -- about $5 billion, out of the roughly $14 billion tied to the deal. The banks are looking to unload the term loan portion of the First Data debt at prices equivalent to a spread of about 275 basis points over the London Interbank Offered Rate, or Libor,

TheStreet.com

reported.

Whether those terms hold up remains to be seen, as expectations are that negotiations will continue to be intense when bankers lock horns in the flesh next week.

Already the banks are facing a 4% haircut in unloading the First Data debt, though losses will be partially offset by fees the banks captured for backing the transaction.

First Data underwriters also have been offering leverage on very attractive terms to lure prospective buyers including the

vulture investors behind distressed-debt funds.

Bankers have been smack in the middle of negotiations between potential buyers of debt and the financial sponsor hedge funds, which have been unwilling to renegotiate terms in any meaningful way because such changes may make the original buyout deals less attractive.

The Street is watching closely to see if First Data goes off without a hitch because it will signal how mega-financings for

TXU

( TXU) and

Alltel

(AT) - Get Report

may fare.