Peloton Completes Successful Debt Refinancing

Peloton Interactive, Inc. has announced the successful completion of a holistic refinancing, which has resulted in a reduction of overall debt, extended debt maturities, and achieved more flexible loan terms. The company syndicated and closed a new $1 billion five-year term loan facility with a broad investor base, while also raising $350 million from new and existing investors through an upsized private offering of convertible senior notes due in 2029. Additionally, the company secured a new $100 million five-year revolving credit facility with JP Morgan and Goldman Sachs.

Peloton used the net proceeds from the notes and new credit facilities, together with cash on hand, to strategically repurchase approximately $800 million of 0% convertible senior notes due in 2026 at a discount, to refinance its existing term loan and revolving credit facilities, and to pay fees and related expenses.

Liz Coddington, the Chief Financial Officer of Peloton, expressed delight in the show of support from new and existing investors, highlighting the achievement of the refinancing goals of modestly deleveraging and extending maturities at a reasonable blended cost of capital. Coddington emphasized that the successful outcome underscores the resilience of Peloton's subscription business and signifies a tremendous vote of confidence in Peloton's future.

The company worked with its lead banks, JP Morgan and Goldman Sachs, and its financial advisor, BDT & MSD Partners, to complete this holistic refinancing, positioning Peloton to continue providing the best fitness experience for its members and to deliver sustainable, profitable growth for its shareholders. Today the company's shares have moved 10.5% to a price of $3.47. For more information, read the company's full 8-K submission here.

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