Peloton Stock Plunges On Global Refinancing Initiative: The Details
Portfolio Pulse from Adam Eckert
Peloton Interactive Inc (NASDAQ:PTON) shares dropped 8.4% in after-hours trading following the announcement of a global refinancing initiative. The company plans to offer $275 million in convertible senior notes due 2029 and enter into a $1 billion term loan facility and a $100 million revolving credit facility. Proceeds will be used to repurchase $800 million of its 0.00% convertible senior notes due 2026 and refinance existing loans. This follows a recent CEO transition and restructuring efforts aimed at reducing costs.
May 20, 2024 | 8:39 pm
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Peloton's stock dropped 8.4% in after-hours trading following the announcement of a global refinancing initiative. The company plans to offer $275 million in convertible senior notes and enter into new credit facilities. Proceeds will be used to repurchase existing notes and refinance loans. This comes after recent CEO changes and restructuring efforts.
The announcement of a significant refinancing initiative, including a $275 million convertible notes offering and new credit facilities, has led to an 8.4% drop in Peloton's stock price in after-hours trading. This follows recent CEO changes and restructuring efforts, indicating potential instability and financial restructuring concerns among investors.
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