Peloton Interactive, Inc. Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

Peloton Interactive, Inc. (PTON) announced a public offering of $1 billion in Class A common stock, with an option for underwriters to purchase an additional $150 million. This offering is subject to market conditions, with no guarantee of completion. The registration statement has been filed with the SEC. Interested buyers include entities affiliated with Durable Capital Partners and TCV. Goldman Sachs and J.P. Morgan are leading the underwriting process. The funds will be used for general corporate purposes, but the exact application remains uncertain.

Positive

• Planned use of funds for general corporate purposes that may support growth.
• Interest from notable investment entities may provide confidence in the offering.

Negative

• Potential dilution of shares for existing shareholders due to the new stock issuance.
• Market conditions may affect the completion of the offering, creating uncertainty.

NEW YORK, Nov. 16, 2021 /PRNewswire/ -- Peloton Interactive, Inc. ("Peloton") (Nasdaq: PTON) today announced that it has commenced an underwritten public offering of $1 billion of shares of its Class A common stock. In addition, Peloton is expected to grant the underwriters of the offering a 30-day option to purchase up to an additional $150 million of shares of Class A common stock at the public offering price, less underwriting discounts, and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed.

Entities affiliated with Durable Capital Partners LP and TCV, of which one of our directors is a co-founder and general partner, and funds and accounts advised by T. Rowe Price Associates, Inc. have expressed an interest in purchasing shares of Class A common stock in the offering.

Goldman Sachs & Co. LLC and J.P. Morgan are acting as representatives for the underwriters in the offering of Class A common stock.

A registration statement relating to the offering of Class A common stock has been filed with the Securities and Exchange Commission ("SEC") and became effective upon filing. This offering is being made only by means of a prospectus supplement and related prospectus, copies of which may be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, Attention: Control Room, or J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone at 866-803-9204, or by email at prospectus-eq_fi@jpmchase.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Peloton
Peloton is the leading interactive fitness platform, with a loyal community of more than 6.2 million Members. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage its Members to be the best versions of themselves. An innovator at the nexus of fitness, technology, and media, Peloton has reinvented the fitness industry by developing a first-of-its-kind subscription platform that seamlessly combines the best equipment, proprietary networked software, and world-class streaming digital fitness and wellness content, creating a product that its Members love. The brand's immersive content is accessible through the Peloton Bike, Peloton Tread, Peloton Bike+, and Peloton App, which allows access to a full slate of fitness classes across disciplines, on any iOS or Android device, and a wide range of compatible smart TVs. Founded in 2012 and headquartered in New York City, Peloton has a growing number of retail showrooms across the US, UK, Canada, Germany, and Australia.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements related to whether or not Peloton will consummate the offering, prevailing market conditions, the anticipated use of the net proceeds of the offering, which could change as a result of market conditions or for other reasons, the impact of general economic, industry or political conditions in the United States or internationally, risks related to the impact of the COVID-19 pandemic; and any statements of assumptions underlying any of the foregoing. You can identify these statements by the use of terminology such as "believe", "plans", "expect", "will", "should," "could", "estimate", "anticipate", or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" section of our SEC filings, including our most recent Form 10-K and 10-Q, which are available on the SEC website at www.sec.gov.

All forward-looking statements contained herein are based on information available to us as of the date hereof, and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.

Media Contact: press@onepeloton.com, or Investor Relations Contact: investor@onepeloton.com

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SOURCE Peloton

FAQ

What is the purpose of Peloton's recent public offering?

Peloton's public offering aims to raise $1 billion for general corporate purposes, although the exact application of funds is uncertain.

How much additional stock can underwriters purchase in Peloton's offering?

Underwriters have the option to purchase up to an additional $150 million in shares.

Who are the underwriters for Peloton's stock offering?

Goldman Sachs & Co. LLC and J.P. Morgan are acting as the representatives for the underwriters.

What are the risks associated with Peloton's stock offering?

Risks include potential dilution for existing shareholders and market conditions affecting the offering's completion.

When was Peloton's public offering announced?

Peloton announced its public offering on November 16, 2021.