JPMorgan Chase & Co. is exploring options for a new debt sale for Qualtrics International Inc. after underwriters were left with over $5 billion in loans earlier this year. One potential path involves launching a smaller financing package, splitting the debt evenly between high-yield bonds and leveraged loans, possibly totaling around $2 billion in each market. The deal could include stronger lender protections, similar to recent software company transactions.
Qualtrics had previously paused talks for a $5.3 billion financing due to AI-driven sector selloff concerns. Banks that funded the Silver Lake-backed acquisition in October ended up absorbing over $500 million in expected paper losses. Now, JPMorgan may use fresh third-quarter earnings to attract investors.
Qualtrics reported $718 million in Q2 revenue, nearly flat versus prior quarter, with adjusted EBITDA rising to $332 million from $257.8 million year-over-year. Its existing 2030 loan trades at about 84 cents on the dollar, up from deeper discounts but still below par. Other software firms like Proofpoint and Gainwell have recently offered sweeter terms to refinance debt, including tighter borrowing limits and asset shift restrictions.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing