Peloton Interactive Plans $1 Billion Common Stock Offering

view original post

By Colin Kellaher

Peloton Interactive Inc. on Tuesday said it plans to raise $1 billion in an underwritten public offering of common stock.

The New York interactive fitness platform said it also expects to grant the underwriters a 30-day option to buy up to an additional $150 million in stock.

Peloton, which currently has about 274 million shares outstanding, sports a market capitalization of nearly $15 billion based on Monday’s closing price of $47.49. A $1 billion offering at that price would equate to about 21 million new shares.

Peloton said Entities affiliated with Durable Capital Partners LP and TCV, of which board member Jay Hoag is a co-founder and general partner, have expressed an interest in buying shares in the offering, as have funds and accounts advised by T. Rowe Price Associates Inc.

Peloton shares have fallen sharply this month after the company posted lower-than-expected quarterly results and cut its fiscal-year revenue guidance.

The company’s shares, which are down nearly 70% for the year to date, hit a 52-week low of $46.70 during Monday’s session before closing at $47.49. In premarket trading Tuesday, the stock was recently down 3.4% to $45.90.

Write to Colin Kellaher at