Peloton Interactive Inc. announced that it has closed its offering of 0 percent convertible senior notes due 2026 for gross proceeds of $1.0 billion, including the full exercise of the $125.0 million option to purchase additional notes granted by Peloton to the initial purchasers.
The notes are senior, unsecured obligations of Peloton that do not bear regular interest, and the principal amounts of the notes will not accrete. The notes will mature on February 15, 2026, unless earlier redeemed, repurchased or converted. Peloton may not redeem the notes prior to February 20, 2024.
Peloton estimates that the net proceeds from the offering will be approximately $976.8 million, after deducting the initial purchaser’s discount and commissions and estimated offering expenses payable by Peloton. Peloton used approximately $81.3 million of the net proceeds from the offering of the notes to pay the cost of the capped call transactions to protect against dilution from the conversion.
