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.
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.