Peloton loan draws Apollo, Blackstone

Peloton is shoring up its balance sheet with $750 million of new debt thanks to private lenders that include Blackstone and Apollo as well as traditional loan investors, the Financial Times reports.

Why it’s important: Private capital is increasingly becoming a source public companies can turn to when they’re poor candidates for leveraged loans or other traditional forms of financing and seeking a fresh lifeline quickly.

• Private lending deals are typically done directly between companies and their lenders as well, the FT writes.

Context: Private equity firm Thoma Bravo tapped the private credit markets in its $10.7 billion acquisition of Anaplan with the help of Blackstone, Apollo, Golub Capital and Owl Rock.

Of note: Peloton signaled it was in need of financing last week when it reported wider losses and dwindling cash.

• The company had $879 million in unrestricted cash and cash equivalents at the end of its third quarter.

Peloton, Apollo, and Blackstone did not immediately respond to a request for comment.