04:51 PM EDT, 05/20/2024 (MT Newswires) -- Peloton Interactive ( PTON ) unveiled, late on Monday, an offering of $275 million of convertible senior notes due 2029 in a private placement, as part of a global refinancing plan.

Additionally, as part of the arrangement, the company plans to enter into a $1 billion five-year term loan facility and a $100 million five-year revolving credit facility.

Peloton also expects to grant initial purchasers of the notes a 13-day option to purchase up to $41.3 million worth of additional notes.

The company intends to use the net proceeds and cash on hand to repurchase about $800 million of 0.00% convertible senior notes due 2026 to refinance its existing term loan and revolving credit facilities.

Shares of Peloton fell 10% in after-hours activity.

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