Peloton Interactive (NASDAQ:) announced plans to refinance its existing debt by offering $275 million of convertible senior notes due 2029. Peloton shares fell 3.6% on the news in after-hours trading Monday.
The fitness company also said it would enter into a $1 billion term loan with a maturity of five years.
The refinancing strategy includes the creation of a revolving credit facility in the amount of US$100 million, also for a period of five years.
As part of the debt restructuring, Peloton intends to repurchase approximately $800 million of its 0.00% convertible senior notes due 2026.
Bloomberg News reported that Peloton is offering a coupon of 5% to 5.5% on its proposed $275 million convertible note offering.
The Company intends to refinance its current term loan and revolving credit facilities.
Terms, including interest rates and conversion rates of the new notes, will be finalized once pricing has been established.