JPMorgan weighs deep discount to sell $5 billion Qualtrics software debt

· Finance · United States

Banks led by JPMorgan Chase are considering offering one of the year's biggest discounts to sell some of the $5 billion in debt for software firm Qualtrics International that underwriters have been stuck holding for several months. The move reflects the strain in leveraged-finance markets, where banks that committed to back buyouts and other deals have had to accept steep losses to clear inventory. Selling the Qualtrics debt at a large discount would free up JPMorgan's balance sheet and set a pricing reference for other hung software-related loans.

Why it matters：Hung leveraged loans are a key pressure point for bank balance sheets and the private-equity deal pipeline, so how JPMorgan prices this exit will shape appetite for future software buyouts.

Key points

  • Underwriters have been stuck holding the $5 billion Qualtrics debt for several months.
  • The contemplated discount would rank among the largest of the year.
  • Banks led by JPMorgan are seeking to clear the exposure from their books.

Sources (original reporting)

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