Peloton under pressure as it hits refi button
Peloton (NASDAQ:PTON) shares tumbled around 16% lower in Tuesday’s trading, after the exercise technology firm announced a refinancing.
It is selling $275 million of convertible loan notes, due in 2029, in a private deal and also secured a new $1 billion loan over 5 years, plus $100 million revolving credit facility.
Proceeds will repay $800 million of existing notes due in 2016, along with other debt repayment.
It comes after Peloton earlier this month announced a key management change, with chief executive Barry McCarthy exiting the business.
At the same time, it reported a plan to cut $200 million of costs, including job cuts, and reported a net loss of $167 million for its third quarter.
That was Peloton’s 13th consecutive quarterly loss.
More recently, Peloton shares were last week boosted by reports of “private equity interest”.
Today, in New York, Peloton shares were down some 16% changing hands at $3.27.
