By Matt Tracy and Saeed Azhar
March 18 (Reuters) – A bunch of banks led by JPMorgan Chase plans to market a debt bundle tied to software program agency Qualtrics’ buy of peer Press Ganey Forsta after concluding a debt sale for the take-private of recreation writer Digital Arts, in keeping with two individuals acquainted with the matter.
JPMorgan is the lead banker on each transactions, seen as a take a look at case by bankers for the way future leveraged finance transactions navigate the market volatility that has hit the expertise sector, they mentioned.
The group launched the sale of a $5.75 billion cross-border mortgage to finance EA’s leveraged buyout on Monday, with an intention to shut that deal by finish of day March 23 earlier than it negotiates pricing for the Qualtrics debt, one of many individuals acquainted mentioned.
EA in September mentioned it agreed to be acquired by an investor consortium together with Saudi Arabia’s Public Funding Fund, Silver Lake and Affinity Companions. The file $55 billion LBO deal, which is predicted to shut in June, is being financed partly by a seven-year time period mortgage B, a $3.25 billion time period mortgage A and $9 billion in different greenback and euro-denominated secured and unsecured debt.
The debt providing has to this point garnered greater than $19 billion in investor demand since its Monday main market launch, the primary individual acquainted mentioned.
Qualtrics declined to remark. EA didn’t instantly reply to requests for remark.
Qualtrics, which is owned by Silver Lake, introduced in October an settlement to purchase healthcare market analysis firm Press Ganey Forsta in a $6.75 billion deal. It’s being financed largely by a $5.3 billion debt bundle that features a $3.3 billion leveraged mortgage and $2 billion in high-yield bonds, each individuals acquainted mentioned.
Silver Lake didn’t instantly reply to a request for remark.
Advertising and marketing plans for this and different debt tied to software program debtors come as quite a few shares have dropped sharply as a consequence of rising issues over the disruption of software program companies by synthetic intelligence.
The banks plan to start worth discovery for the Qualtrics debt shortly after the EA debt sale closes. They’ve already begun pre-marketing discussions with traders, the primary individual acquainted mentioned. The Qualtrics debt sale is predicted to shut in early April, however that timeline might change, each individuals acquainted mentioned.
(Reporting by Matt Tracy; enhancing by Megan Davies and David Gaffen)