JPMorgan Chase & Co (JPM)-led group of banks are planning to sell approximately $5.3 billion in financing for software firm Qualtrics International later this year after the debt became stuck on their balance sheets, Bloomberg reported Tuesday, citing people with knowledge of the matter.
The lenders funded the deal last month using their own balance sheets after opting against formal syndication following pushback from investors wary of the software sector, according to the report.
The banks now plan to wait until after Qualtrics' third-quarter results, around late September, before attempting to sell the debt to institutional investors, and are likely to restructure it to include junk bonds, the report said.
Qualtrics' existing $1.5 billion 2030 loan has fallen to roughly 83.75 cents on the dollar in secondary trading, down from near par in February, the report added.
Qualtrics represents the largest hung debt deal to have run into trouble this year, Bloomberg noted.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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