Oaktree Capital Management and other lenders are close to striking a deal with Providence Equity Partners to take control of the security company that vetted former spy agency contractor Edward Snowden, the New York Post reported.

No deal for Altegrity Inc has yet been reached but there is a "high chance" there will be a debt-for-equity swap, the Post said, citing two sources close to the situation.

Altegrity owns USIS Investigations Services, which carries out background checks for the U.S. government.

The company reported a cyberattack at the division in August that exposed highly personal employee information at the Department of Homeland Security's headquarters, as well as its U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection units.

Providence refinanced Altegrity's $1.75 billion in loans in June, the Post said.

Altegrity has to make $70 million in debt payments in the first quarter, most of which is due in January, the newspaper said.

The talks could still fall apart, the Post said.

Providence bought Altegrity in 2007 for $1.5 billion from Carlyle Group LP (CG.O) and Welsh, Carson, Anderson & Stowe. Altegrity expanded its intelligence and security consulting business through its $1.13-billion acquisition of Kroll in 2010.

Oaktree Capital Management and Altegrity were not immediately available to comment.