Peloton Expands Note Offering to $700 Million in Refinancing Plan

Peloton increased the size of its planned senior secured note sale from $600 million to $700 million Tuesday, setting an 8.625% annual rate and a 2032 maturity as it seeks to refinance existing debt.

The company plans to combine the net proceeds with cash on hand to repay all term loans outstanding under its five-year, $1 billion credit facility and cover related costs. The facility is to be terminated in connection with repayment.

Peloton announced its refinancing plan Monday. It also includes a proposed five-year, $200 million revolving credit facility. The notes offering can close even if the new credit line is not established or the existing term loans have not been repaid.

The sale to initial purchasers is expected to settle Nov. 20, subject to customary closing conditions. Any net proceeds remaining after repayment and related costs are designated for general corporate purposes, which may include share repurchases, capital expenditures, working capital and acquisitions.