Peloton's shares plummet after refinancing to address cash flow issues caused by falling sales

From CNBC: 2024-05-20 17:07:36

Peloton shares plunged after announcing a $1.375 billion global refinancing plan to solve cash flow issues caused by falling sales. The company will offer $275 million in convertible notes, $1 billion term loan, $100 million revolving credit facility. Shares dropped 12% post announcement but later recovered. CEO Barry McCarthy recently stepped down and layoffs were announced to align spending with revenue. Peloton aims to use the funds to repurchase $800 million of convertible notes and refinance its term loan to improve its cash position and achieve positive free cash flow. The company is working with JPMorgan and Goldman Sachs on a refinancing strategy to deleverage and extend maturities at a reasonable cost of capital.



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