Peloton Begins Sale of $1 Billion Loan That May Yield 11.5%
- Deal to refinance another loan and buy back convertible notes
- Loan is unrated and being marketed to mix of investors
A Peloton Tread inside a showroom in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Peloton Interactive Inc., the fitness company known for its pricey stationary bikes and treadmills, kicked off the sale of a $1 billion loan offering as it works to refinance existing debt and recover from a recent slump in sales, according to a person familiar with the matter.
Early pricing discussions call for the loan to carry interest at 600 basis points over the Secured Overnight Financing Rate and comes at a discount of 98 cents to 98.5 cents on the dollar, said the person, who asked not to be identified discussing private details. That pricing would work out to a yield of around 11.5%.