Banks Test Market with EA, Qualtrics Debt Deals

A group of banks, spearheaded by JPMorgan Chase, is navigating market volatility by launching debt packages for two substantial acquisitions. The firm is managing the sale of a $5.75 billion loan to finance Electronic Arts' leveraged buyout, with a target closing date of March 23. This transaction is being closely watched as a benchmark for future leveraged finance deals in the current tech market climate.

Following the EA debt sale, the banks plan to proceed with pricing for Qualtrics' acquisition of Press Ganey Forsta. This deal involves a $5.3 billion debt package, including a $3.3 billion leveraged loan and $2 billion in high-yield bonds. Marketing for this offering will commence shortly after the EA deal concludes, with an expected closing in early April, though timelines remain subject to change amid broader concerns about artificial intelligence's impact on software businesses.