JPMorgan-Led Group Eyes $500 Million Loss on Qualtrics Debt

A group of banks led by JPMorgan Chase & Co. is expected to shoulder paper losses of more than $500 million on a debt deal for software firm Qualtrics International Inc., according to people with knowledge of the matter.

The banks are preparing to use their own balance sheets to fund $5.3 billion of debt for Qualtrics’ acquisition of Press Ganey Forsta, said the people, asking not to be identified discussing private details. That would make it the biggest “hung” deal in the leveraged finance market this year.

The lenders decided not to launch a formal offering after ...