Peloton is looking at the potential of raising $800 million through its first-ever bond sale and enlisted Goldman Sachs to assess investor interest in a secured offering, according to published reports.
The fitness technology maker known for its exercise bikes and treadmills is eyeing a bond offering that would yield around 8 percent based on a Bloomberg report on Wednesday that cited sources familiar with the talks.
Peloton could use the funds to refinance an existing $1 billion term loan from 2024 and adjust prior restrictions that included limits like stock buybacks. Under the terms of that deal, the company initiated a major refinancing under the five-year loan that matures on May 30, 2029.
That $1.0 billion term loan was part of a larger $1.35 billion refinancing step that also included a $100 million revolving credit facility and $350 million of convertible notes due in 2029 at 5.50 percent annual interest. Peloton used the financing and cash to repurchase around $800 million of its existing convertible notes that were due and paid in February and originally issued in 2021.
No decision has been made on the potential bond sale discussion.
Peloton continues to navigate a substantial turnaround effort and CEO Peter Stern described fiscal year 2026 as a “defining milestone” in the company’s fourth quarter earnings report. The brand’s stock closed at $4.80 on Wednesday and is down 97 percent from its all-time high in January 2021 and 22 percent year-to-date.
But an aggressive product launch this year has been part of Peloton’s revamp strategy, with the company launching a treadmill and bike series for commercial fitness centers in March in a push to enter the multibillion-dollar gym space. Peloton already has its Pro Series treadmills and bikes in hotel chains like Hilton, Marriott and Hyatt and has spent the year convincing large gyms to see the commercial equipment as distinct products from its at-home offerings.
On the consumer side, the company revamped its product offerings and introduced three new treadmill models yesterday with the Tread Flex, Tread Vision and Tread+ Vision to help redefine its position in the segment. The three models will be available on October 1 and feature deep integration alongside its AI coaching ecosystem, Peloton IQ.
“From record marathon turnouts around the world to the rise of local run clubs, we’re rediscovering the joy of running, walking and hiking, which we see translating into strong engagement across our platform,” Stern said. “Expanding our treadmill portfolio and launching AI-powered software for runners will allow us to connect with a much wider audience, positioning Peloton to win the multi-billion dollar at-home treadmill market and help many more people achieve their fitness and wellness goals.”
