Peloton staved off the cash crunch that threatened its business. Where does it go now?
What led Peloton to refinance its debt?
Peloton refinanced its debt to reduce overall debt, extend maturities, and achieve more flexible loan terms. This move aimed to support the company's future growth and ease investor concerns about liquidity, providing the breathing room needed to turn around its business.
How has Peloton's debt restructuring affected its financial stability?
Peloton's debt restructuring has improved its financial stability by reducing its debt from about $1.75 billion to around $1.55 billion and pushing off looming due dates on loans. This has eased investor concerns about liquidity and provided the company with the breathing room it needs to try to turn around its business.
What are the new terms of Peloton's refinanced loans?
Peloton refinanced its debt by securing a new $1 billion term loan, raising $350 million in convertible senior notes, and receiving a new $100 million line of credit from JP Morgan and Goldman Sachs, all due in 2029. This refinancing reduced Peloton's debt from about $1.75 billion to around $1.55 billion and pushed off looming due dates on loans3.