BondsMedium•11 November 2026•
1 min read
Peloton Junk-Bond Debut Draws $6.8 Billion Demand
Key Facts
1Peloton's debut junk-bond sale attracted more than $6.8 billion in orders.
2The offering was upsized by $100 million to a total of $700 million.
3The notes due 2032 were sold to yield 8.63%, down from initial talks in the 9% range.
Peloton's debut junk-bond sale attracted more than $6.8 billion in orders, Athletech News reported. Following the strong demand, the offering was upsized by $100 million to a total of $700 million. The notes due in 2032 were sold to yield 8.63%, down from initial price talk which had been in the 9% range.
Proceeds from the sale will help Peloton repay debt maturing in 2029, according to a company statement. Moody's Ratings noted on Monday that the company's earnings and free cash flow have improved significantly following restructuring efforts. However, the agency assigned a Ba3 rating to the offering—three steps below investment grade—noting that sustaining gains while restoring growth remains a key credit risk.