Peloton Interactive Inc. is tapping the junk-bond market for the first time to raise approximately $600 million, the company announced. Proceeds will repay all term loans outstanding under an existing $1 billion five-year term loan facility. The bond offering matures in just over five years and is being pitched at a yield of low-to-mid 9%.
Goldman Sachs Group Inc. is leading the offering, which follows the company's previous $1 billion leveraged loan deal in 2024. A lender call is scheduled for Monday at 11 a.m. New York time. The move marks a strategic shift in Peloton's financing strategy after previously accessing the leveraged loan market earlier this year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing