A JPMorgan Chase & Co. led syndicate expects paper losses exceeding $500 million on a Qualtrics International Inc. debt package.
Lenders are funding the $5.3 billion debt for the Press Ganey Forsta acquisition directly from their balance sheets. This transaction represents the largest hung leveraged finance deal of the year.
The banks halted a formal debt offering following a pause in investor discussions during March. Potential buyers expressed concerns regarding a software industry downturn and the impact of rapid artificial intelligence advancements.