Zhitong Finance learned that Peloton Interactive (PTON.US) announced that it has successfully completed an overall refinancing aimed at supporting future growth by reducing overall debt levels, extending debt terms, and more flexible loan terms. The company has joined and completed a new $1 billion five-year loan arrangement with a broad investor base. Peloton also raised $350 million from new and existing investors through a large-scale private offering of convertible senior notes due in 2029. Additionally, Peloton has reached a new $100 million five-year revolving credit arrangement with J.P. Morgan Chase and Goldman Sachs.

As part of the refinancing plan, Peloton plans to use the proceeds from the notes and new credit lines, as well as cash on hand to strategically repurchase approximately $800 million of 0% convertible senior notes due in 2026 at discounted prices to refinance existing term loans and revolving credit lines and pay fees and related expenses.

Liz Coddinton, the company's chief financial officer, said: “We now have a stronger financial base and are capable of continuing to provide our members with the best fitness experience and sustainable profitable growth for our shareholders.”