Qualtrics ups term loan to $1.2 billion, flexes to SOFR plus 350 bps

By Sara Rosenberg

New York, April 14 – Qualtrics (Quartz AcquireCo LLC) upsized its seven-year first-lien term loan B (B1/B) to $1.2 billion from $1 billion and reduced pricing to SOFR plus 350 basis points from talk in the range of SOFR plus 375 bps to 400 bps, according to a market source.

Also, the company removed a 25 bps pricing step-down at 1.25x gross leverage but kept a 25 bps step-down upon an initial public offering, reduced the floor to 0% from 0.5% and tightened the original issue discount to 99 from 98, the source said.

The term loan still has 101 soft call protection for six months, and ticking fees of half the spread from days 46 to 90 and the full spread thereafter.

JPMorgan Chase Bank, BMO Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., KKR Capital Markets, Mizuho, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are the lead arrangers on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Friday, the source added.

Proceeds will be used with equity to fund the buyout of the company by Silver Lake and Canada Pension Plan Investment Board for $18.15 per share in cash. The transaction values Qualtrics at about $12.5 billion.

Closing is expected in the second half of this year, subject to customary conditions, including the receipt of the regulatory approvals.

Qualtrics, based in Provo, Utah, and Seattle, is a cloud-native software provider that helps organizations identify and resolve points of friction across all digital and human touchpoints in their business.

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