Fenwick Represents Peloton in $1 Billion Convertible Senior Notes Offering

Fenwick represented Peloton Interactive, Inc. (Nasdaq: PTON) in its offering of 0% convertible senior notes due 2026 for gross proceeds of $1.0 billion, including the full exercise of the $125.0 million option to purchase additional notes granted by Peloton to the initial purchasers. 

Peloton used approximately $81.3 million of the net proceeds from the offering of the notes to pay the cost of the capped call transactions described in the company’s announcement. Peloton intends to use the remainder of the net proceeds for general corporate purposes, which may include working capital, capital expenditures, including for the construction or expansion of facilities, and investments in and acquisitions of other companies, products or technologies that Peloton may identify in the future.

The Fenwick transaction team included corporate partners James Evans, David Michaels and Ran Ben-Tzur; associates Jennifer Hitchcock, Annie Omata and Jared Leung; and law clerk Paige Tucker; as well as tax partner William Skinner.