Business · Companies · 10 hrs ago
JPMorgan-Led Banks Weigh Discounted Sale of Qualtrics Debt
JPMorgan-led banks are discussing a sale of nearly $2 billion in Qualtrics debt in the US high-yield bond market.
They may offer the debt at about 85 cents on the dollar with an interest rate of at least 8%.
Qualtrics makes online survey tools and agreed to buy data analytics firm Press Ganey Forsta in a deal valued at $6.75 billion.
The banks paused plans to sell the financing in March as worries about artificial intelligence hurt software company debt, leaving the lenders to fund the purchase themselves.
Qualtrics’ revenue slipped to $711 million in the third quarter from $718 million in the second, while year-over-year growth slowed to 2%.
The banks hope to sell some of the debt this month, potentially before Thanksgiving, and may keep the rest for at least six months unless all lenders agree to sell it.
JPMorgan-led banks are weighing a discounted sale of nearly $2 billion in Qualtrics debt.
The debt could be marketed at a coupon of at least 8% and about 85 cents on the dollar.
The banks had been holding debt used to finance Qualtrics’ acquisition of Press Ganey Forsta.
Investor discussions were halted in March after a wider software selloff linked to concerns about artificial intelligence.
The banks hope to sell part of the financing this month, with a deal potentially priced before Thanksgiving.
- Who
- Banks led by JPMorgan Chase & Co. are weighing the sale. Qualtrics is the borrower.
- What
- The banks are considering selling nearly $2 billion of Qualtrics debt at a discount.
- When
- Investor meetings are scheduled for this week. A sale could come as soon as next week.
- Where
- The debt would be sold in the US high-yield bond market.
- Why
- The banks are seeking to sell debt they funded for Qualtrics’ acquisition of Press Ganey Forsta.
This story does not have two clearly opposing sides.
Qualtrics agreed to buy Press Ganey Forsta in a deal valued at $6.75 billion.
The banks began preliminary discussions with investors to sell down the acquisition financing.
The banks paused investor discussions after a wider software selloff.
Qualtrics reported third-quarter results, and the banks decided to revive the deal after the earnings release.
Bankers scheduled meetings with investors to discuss a sale of nearly $2 billion of debt.
- Potential debt sale
- Nearly $2 billion
- Indicative coupon
- At least 8%
- Indicative price
- About 85 cents on the dollar
- Acquisition value
- $6.75 billion
- Debt financing committed
- About $5.3 billion by 11 banks
- Qualtrics third-quarter revenue
- $711 million