JPMorgan Chase led a banking group in halting a $5.3 billion debt sale for Qualtrics International Inc. The financing was intended to fund the company's acquisition of Press Ganey.
Weak investor interest forced the cancellation. Sources attribute the reluctance to broader concerns about the software sector's vulnerability to artificial intelligence disruption.
The proposed offering consisted of $3.3 billion in leveraged loans. It also included $2 billion in bonds.
Qualtrics' existing $1.5 billion loan is currently trading at approximately 86 cents on the dollar. This price represents a significant decline from near par in February.
The secondary market discount allows investors to purchase the company's existing debt more cheaply than any new issuance.