Peloton Completes $1.5 Billion Global Refinancing Effort

With the successful completion of its "holistic refinancing" strategy, Peloton has gained access to around $1.5 billion. This comprehensive refinancing endeavor aimed to alleviate Peloton's overall debt burden, prolong debt maturities, and negotiate more flexible loan terms. Initially proposed in May 2024, the company sought to raise funds through a combination of a $1 billion loan, $275 million from convertible notes, and a $100 million credit facility.

The finalized refinancing closely mirrors the company's initial goals, comprising a $1 billion loan, a $100 million credit facility, and $350 million from convertible senior notes. Part of the proceeds has been utilized to strategically repurchase approximately $800 million of 0% convertible senior notes due in 2026, along with refinancing existing term loans and credit facilities. Peloton's CFO, Liz Coddington, emphasized the achievement of their deleveraging and maturity extension objectives, expressing confidence in Peloton's subscription business resilience and future prospects. The successful refinancing underscores Peloton's commitment to sustainable growth, as well as its goal of enhancing its position as a top-notch fitness experience provider.

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