UPDATE 2-Boots extends loan deadline, to change terms

(Adds quotes, further background)

By Richard Barley

LONDON, July 20 (Reuters) - UK health and beauty retailer Alliance Boots is revising the terms on 9 billion pounds of bank debt backing its buyout by Kohlberg Kravis Roberts and is extending the deadline for investors to commit to the deal, one of the debt arrangers said on Friday.

The stakeholders in the deal have yet to come to a consensus on the details of the changes, which involve adjustments to the pricing and the structure, although it is hoped that this will happen over the weekend, a spokeswoman for Deutsche Bank said.

The spokeswoman said the company hoped to release further details on the loan package on Monday, along with a new deadline for investors to commit funding. The original deadline was Friday.

KKR [KKR.UL] and Boots [AB.UL] Deputy Chairman Stefano Pessina agreed in April to buy the retailer for 11.1 billion pounds ($22.8 billion) in Europe's biggest ever private equity deal and the first of a FTSE 100 company.

The deal is being watched closely by the broader credit markets as an indicator of investor sentiment and risk appetite.

"People are antsy about financing. Everyone is looking at Boots and thinking about it," said one London-based mergers and acquisitions banker.

The banker said that even a non-private equity deal involving non-recourse financing could face the same situation.