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.