JPMorgan Chase & Co. is leading a group of banks that may offer one of the year’s largest discounts to sell part of the $5 billion in debt tied to Qualtrics International Inc. The underwriters have been holding onto this debt for months, and now they are preparing to market nearly $2 billion of it in the high-yield bond market.
Meetings with investors are scheduled for this week to discuss the potential sale. Initial indications suggest the debt could be marketed at a coupon of at least 8% and at a discounted rate of about 85 cents on the dollar, according to people familiar with the matter who spoke on condition of anonymity.
The significant discount reflects the challenges faced by the underwriters, who have been stuck with the debt since earlier this year. The move highlights the difficulties in placing large debt offerings in the current market conditions.