Why Peloton Stock Just Popped
Shares of connected fitness-equipment maker Peloton Interactive (NASDAQ: PTON) are closing out the week on a high note, up 4.9% at 2:25 p.m. EST on Friday. That's a big change from earlier in the week, when Peloton's share price slipped in response to news that the company was borrowing $600 million at an undisclosed rate. Now we know what that rate will be.
Image source: Getty Images.
Four days ago, Peloton announced the private placement of convertible senior notes due in 2026 to raise $600 million in cash. Seeing plenty of demand for its debt (convertible into stock), the company quickly upsized that offering to $875 million and gave its underwriters the option of acquiring $125 million more -- and advised that it would be paying 0% interest on the notes.
Source Fool.com
