Skip to content
Subscriber Only

Peloton Gets Multibillion-Dollar Endorsement From Debt Buyers

  • Company got $2 billion in demand for $750 million loan sale
  • Unusual terms may hand investors big payout if Peloton is sold
A Peloton showroom in Dedham, Mass.

A Peloton showroom in Dedham, Mass.

Photographer: Adam Glanzman/Bloomberg
Updated on

Peloton Interactive Inc. got a vote of confidence from investors, who piled into a $750 million loan sale for the struggling home fitness company in a bet that it will deliver on a turnaround -- or that they will be paid out in the event of a sale.

Investors placed $2 billion of demand for the offering, which priced at a final yield of over 8% Tuesday, according to a person with knowledge of the matter, who asked not to be identified when discussing a private transaction.