PELOTON INTERACTIVE, INC. ANNOUNCES PRICING OF OFFERING OF $300.0 MILLION 5.50% CONVERTIBLE SENIOR NOTES DUE 2029
NEW YORK, May 21, 2024 /PRNewswire/ — Peloton Interactive, Inc. (“Peloton”) (Nasdaq: PTON) today announced the pricing of $300.0 million aggregate principal amount of Convertible Senior Notes due 2029 (the “notes”) in a private offering (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”), an upsize from the previously announced offering size of $275.0 million. Peloton also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $50.0 million aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on May 24, 2024, subject to customary closing conditions, and is expected to result in approximately $300.0 million in gross proceeds to Peloton before deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by Peloton (assuming no exercise of the initial purchasers’ option to purchase additional notes). The offering is part of a previously announced global refinancing, which also includes the proposed entry into a $1.0 billion five-year term loan facility (the “new term loan facility”) and a $100.0 million five-year revolving credit facility (together with the new term loan facility, the “new credit facilities”).