Simpson Thacher recently represented Peloton Interactive, Inc. (“Peloton”) in connection with a $1.35 billion debt refinancing. The refinancing included an offering of $350 million aggregate principal amount of 5.5% senior convertible notes due 2029 pursuant to Rule 144A (the “Notes”), the establishment of a new $1 billion term loan facility (the “Term Loan”) and a $100 million revolving credit facility (together with the Term Loan, the “New Credit Facilities”).
The net proceeds from the issuance of the Notes, along with the proceeds from the New Credit Facilities and cash on hand, were used to repurchase approximately $800 million of Peloton’s 0.00% convertible senior notes due 2026, to refinance existing term loan and revolving credit facilities and to pay fees and expenses related thereto.
Peloton is a leading global fitness company with a highly engaged community of over 6.5 million Members across the United States, United Kingdom, Canada, Germany and Australia.
The Simpson Thacher team included Dave Azarkh, Hui Lin, Lia Toback, Jessica Ryan and Sally Jo (Capital Markets); Christopher Brown, Mark Haddox, Janhvi Barthwal and Alexandra Cullen (Credit); Jonathan Cantor and Edward Grais (Tax); Michael Isby and Deepa Sarkar (Environmental); Ryan Stalnaker (Regulatory); Kate Mirino and Ziang Zhou (IP); and Pasco Struhs (ECEB).