Proactive Investors - Peloton (NASDAQ:PTON) Interactive Inc (NASDAQ:PTON) headed almost 4% lower in pre-market trading on Tuesday after unveiling a debt refinancing plan as it grapples with muted demand.
An offer for US$275 million worth of convertible loan notes was announced on Monday, with these set to mature in 2029.
Plans to enter into US$1 billion five-year term loan and US$100 million five-year revolving credit facilities were also unveiled.
Peloton said proceeds would be used to repurchase US$800 million worth of convertible senior notes due in 2026, alongside for refinancing an existing loan.
The plan comes after Peloton announced recently that chief executive Barry McCarthy would step down and said 15% of its workforce would be laid off.
This was because Peloton “simply had no other way to bring its spending in line with its revenue,” according to the company.
Peloton has struggled in the face of declining demand for its fitness products, with the restructuring plan designed to boost cash by leading to savings of US$200 million through 2025.
Shares fell 3.6% to US$3.77 in pre-market trading.