Lead arrangers JP Morgan and Goldman Sachs have launched a $750 million, five-year first-lien term loan for Peloton, according to sources. Commitments are due by 2 p.m. ET today.
The term loan is offered at Sofr+650, with a 0.5% floor and an original-issue discount in the range of 95-96. The facility has a 50 bps margin step-up if the deal is not rated within six months of closing. The term loan is non-callable for one year, then callable at 103 and par in years two and three, respectively.
At talk, yield to maturity is approximately 9.05%-9.33%.
Proceeds from the deal will be used for general corporate purposes.
Peloton Interactive (Nasdaq: PTON) provides interactive fitness products in North America and internationally.
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