Refinancing Reduces Debt and Extends
Maturities to Support Peloton's Future Growth
NEW
YORK, May 30, 2024 /PRNewswire/ -- Peloton
Interactive, Inc. ("Peloton") (NASDAQ: PTON) today announced it has
successfully completed a holistic refinancing that reduced overall
debt, extended debt maturities and achieved more flexible loan
terms.
Summary of Transactions
- The Company syndicated and closed a new $1 billion five-year term loan facility with a
broad investor base (the "new TLB facility")
- The Company raised $350 million
from new and existing investors through an upsized private
offering of convertible senior notes due in 2029 (the "notes")
- The Company secured a new $100
million five-year revolving credit facility with JP Morgan
and Goldman Sachs (together with the new TLB facility, the
"new credit facilities")
Peloton used net proceeds from the notes and new credit
facilities, together with cash on hand, to strategically repurchase
approximately $800 million of 0%
convertible senior notes due in 2026 at a discount, to refinance
its existing term loan and revolving credit facilities and to pay
fees and related expenses.
"On behalf of the entire Peloton leadership team, we're
delighted with the incredible show of support that we received from
new and existing investors who contributed to our oversubscribed
and competitively priced refinancing. Notably, we achieved our
refinancing goals of modestly deleveraging and extending our
maturities at a reasonable blended cost of capital," said
Liz Coddington, Chief Financial
Officer of Peloton. "This successful outcome underscores the
resilience of our subscription business and signifies a tremendous
vote of confidence in Peloton's future. We are now operating from
stronger financial footing and are well positioned to continue to
provide the best fitness experience for our Members and deliver
sustainable, profitable growth for our shareholders."
The Company worked with its lead banks, JP Morgan and Goldman
Sachs, and its financial advisor, BDT & MSD Partners, to
complete this holistic refinancing.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this press release other than statements of historical
fact, including, without limitation, statements regarding our
expectations regarding the refinancing and our future growth, are
forward-looking statements. The words "believe," "may," "will,"
"estimate," "potential," "continue," "anticipate," "intend,"
"expect," "could," "would," "project," "plan," "target," and
similar expressions are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions.
We have based these forward-looking statements on our current
expectations and projections about future events and trends that we
believe may affect our financial condition, results of operations,
business strategy, short-term and long-term business operations and
objectives, and financial needs. These forward-looking statements
are subject to a number of risks, uncertainties, and assumptions
and other important factors that could cause actual results to
differ materially from those stated, including, without limitation:
our ability to achieve and maintain future profitability; our
ability to effectively manage our growth and costs; risks related
to our common stock and indebtedness; our anticipated use of the
net proceeds from the refinancing; and those risks and
uncertainties described in the sections titled "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in Part I, Item 2 of our Quarterly Report on Form 10-Q
for the quarterly period ended March 31,
2024 and the sections titled "Risk Factors" in Part I, Item
1A and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in Part II, Item 7 in our Annual Report
on Form 10-K for the fiscal year ended June
30, 2023, as such factors may be updated in our filings with
the Securities and Exchange Commission (the "SEC"), which are
available on the Investor Relations page of our website at
https://investor.onepeloton.com/investor-relations and on the
SEC website at www.sec.gov.
You should not rely upon forward-looking statements as
predictions of future events. The events and circumstances
reflected in the forward-looking statements may not be achieved or
occur. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, performance, or achievements. Our forward-looking
statements speak only as of the date of this press release, and we
undertake no obligation to update any of these forward-looking
statements for any reason after the date of this press release or
to conform these statements to actual results or revised
expectations, except as required by law.
About Peloton
Peloton (NASDAQ: PTON), provides Members with expert
instruction, and world class content to create impactful and
entertaining workout experiences for anyone, anywhere and at any
stage in their fitness journey. At home, outdoors, traveling, or at
the gym, Peloton brings together immersive classes, cutting-edge
technology and hardware, and the Peloton App with multiple tiers to
personalize the Peloton experience [with or without equipment].
Founded in 2012 and headquartered in New
York City, Peloton has millions of Members across the US,
UK, Canada, Germany, Australia, and Austria. For more information, visit
www.onepeloton.com.
Investor Relations Contact:
James Marsh
investor@onepeloton.com
Press Contact:
Letena Lindsay
press@onepeloton.com
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SOURCE Peloton