03:44 AM EDT, 05/22/2024 (MT Newswires) -- Peloton Interactive ( PTON ) said late Tuesday it priced a private placement to eligible institutional buyers of $300 million of convertible senior notes due 2029.

The initial purchasers have been granted a 13-day option to purchase up to $50 million additional amount of notes.

Net proceeds will be used to partly fund the redemption of $800 million of zero-percent convertible senior notes due 2026 and for other debt repayments, the company said.

The notes will be convertible at an initial rate of $4.58 per class A common share.

The offering was upsized from $275 million.

Price: 3.3500, Change: +0.08, Percent Change: +2.45