A syndicate headed by JPMorgan Chase & Co. is set to sell roughly $5.3 billion of debt tied to software‑maker Qualtrics International Inc. before year‑end. The financing, described as “hung” debt, remains on the banks’ balance sheets after the company’s earlier capital‑raising efforts left a tranche unsold. Offloading the exposure will free capital for new lending and will likely settle at prevailing market rates.

Investors have watched the debt linger since Qualtrics’ 2023 IPO, which left a sizable unsecured note on the books. By moving the instrument to secondary markets, the lenders aim to reduce risk‑weighted assets and improve liquidity ratios. The transaction also signals that the market may finally absorb the lingering financing, easing pressure on the firm’s credit profile, providing clearer signals for rating agencies.

Bankers expect the sale to close in the fourth quarter, timing it before regulatory reporting deadlines. Should the deal proceed as planned, the banks will clear a notable chunk of exposure, while Qualtrics could see a modest uplift in its debt‑to‑equity metric. The move underscores how lenders are managing post‑IPO balance‑sheet excess in a tightening credit environment. This clearance also improves their capital adequacy scores.