A group of banks led by JPMorgan HALTED a $5.3 billion debt deal for software firm Qualtrics after failing to attract investor interest, according to Bloomberg.

The deal was meant to fund Qualtrics' $6.75 billion acquisition of Press Ganey Forsta, with $3.3 billion in leveraged loans and $2 billion in junk bonds or private credit.

Qualtrics' existing 2030 loan has collapsed to ~86 cents on the Dollar, down from ~100 cents in early February, a -15% decline in just 6 weeks.

At that price, investors can buy the existing debt at a steep discount rather than paying full price for a new issuance, effectively killing demand for the new deal.

This comes as the broader software sector faces growing uncertainty over AI disruption, with investors increasingly questioning which companies will survive the transition.

The 11 banks that committed to financing the deal back in October cannot walk away, and if they cannot find buyers, they will be forced to fund it themselves.

In that scenario, the banks may attempt to offload the debt at a significant discount, risking fee erosion or even outright losses.

AI is no longer just disrupting businesses, it is now reshaping how they raise capital.