Why Peloton Is Raising $600 Million
Following its fiscal 2021 second quarter earnings release last week, Peloton (NASDAQ: PTON) is looking to raise $600 million in fresh capital through a private offering of convertible notes that will mature in 2026. Shares fell modestly on the news, likely due to the fact that institutional investors who buy convertible bonds typically simultaneously short the stock as part of a convertible arbitrage strategy.
Beyond that market dynamic, here's why investors should like the offering.
Image source: Peloton.
Source Fool.com