Peloton Launches $600 Million Junk Bond Offering to Refinance Debt

Peloton Interactive announced the launch of its first junk bond offering on Monday to raise approximately $600 million. The company plans to use the net proceeds, along with existing cash on hand, to refinance and repay all outstanding term loans from a previous $1 billion five-year arrangement.

Goldman Sachs Group is leading the sale of the senior secured notes, which is scheduled for this week. The bonds are expected to mature in more than five years and will feature semiannual interest payments with a marketed yield in the low-to-mid 9% range.

This financing effort follows a period of aggressive debt reduction. As of September 30, the company reported its gross principal debt outstanding had fallen to $1.048 billion, representing a 32% decrease from December 31, 2025.