Market sources have told The Desk that JP Morgan delayed the Qualtrics debt sale rather than force pricing into a market weakened by AI-related concerns around software credits. Instead, it focused sales energy on the much larger Electronic Arts buyout financing, where it is the lead underwriter and provided the original committed bridge debt.
Public reporting has identified Bank of America, Citi, Morgan Stanley and Barclays among 20 banks that joined the wider EA financing package.
Market participants said Electronic Arts’ buyout debt is tentatively finding demand this week as a JP Morgan-led bank group syndicates part of the financing behind the US$55 billion take-private of the game publisher. JP Morgan launched the sale of a US$5.75 billion cross-border term loan B, split between a US$4 billion tranche and a €1.5 billion tranche. Both have seven-year maturities. The debt is being marketed at 98.5 cents on the dollar and 350bp to 375bp over Secured Overnight Financing rate (SOFR) and Euribor. Final clients’ orders are due by 23 March.
The syndicated piece sits within a wider acquisition package that also includes a US$3.25 billion term loan A and US$9 billion of other secured and unsecured US dollar and euro debt. When the transaction was announced last September, the consortium led by Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners said it would fund the takeover with US$36 billion of cash, existing equity and US$20 billion of debt. Market sources reported at the time that JP Morgan committed the US$20 billion debt package, effectively providing the bridge backing for the buyout at signing.
Market sources said contrasting business models with Qualtrics helped EA be marketed as more of an experience and content business than a software company vulnerable to near-term AI displacement.
According to Reuters, by 18 March, EA’s financing had attracted more than US$19 billion of investor interest.
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