A planned $5.3bn debt issuance by Qualtrics International Inc has been put on hold by a group of banks led by JPMorgan Chase & Co, after early investor interest failed to materialise amid concerns over the company’s exposure to the software sector, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as saying that leveraged loan and high-yield bond investors were hesitant to take on the new debt due to potential disruption from artificial intelligence, particularly given the volatility in software stocks. As a result, the banks suspended initial discussions on the financing.
Qualtrics’ existing $1.5bn loan maturing in 2030 has already fallen to around 86 cents on the dollar from near par in February, making secondary market purchases more attractive than the proposed new issuance.
The planned debt package was intended to fund Qualtrics’ $6.75bn acquisition of data analytics firm Press Ganey Forsta, announced in October 2025. It was expected to include a $3.3bn leveraged loan and $2bn in either junk bonds or private credit. If market appetite does not improve, the banks may need to fund the acquisition themselves or attempt to sell the debt at a discount, potentially affecting fees and profitability.
Representatives for JPMorgan, Qualtrics, and Silver Lake, which backs Qualtrics, reportedly declined to comment.
