Peloton Begins Sale of $1 Billion Loan That May Yield 11.5% (2)

Peloton Interactive Inc., the fitness company known for its pricey stationary bikes and treadmills, kicked off the sale of a $1 billion loan offering as it works to refinance existing debt and recover from a recent slump in sales, according to a person familiar with the matter.

Early pricing discussions call for the loan to carry interest at 600 basis points over the Secured Overnight Financing Rate and comes at a discount of 98 cents to 98.5 cents on the dollar, said the person, who asked not to be identified discussing private details. That pricing would work out to ...