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•69% Informative
Peloton secured a new $1 billion term loan, raised $350 million in convertible senior notes and received a $100 million line of credit from JP Morgan and Goldman Sachs .
The connected fitness company has pushed off looming due dates on loans that it likely wouldn't have had the cash to pay back.
The fact that it was able to secure these loans signals investors believe in its ability to rightsize its business and eventually pay them back, restructuring experts say.
Peloton makes $1.6 billion in recurring, high-margin subscription revenue.
Analysts say the company could generate $500 million in EBITDA if it cuts research and development, marketing and other expenses.
In May , Peloton announced it would cut 15% of its corporate workforce, but it may be reluctant to back off its growth strategy.
McGee , Toole and Rayburn all left when Peloton was in the process of renewing trainer contracts.
Some instructors may be teaching fewer classes as part of the live content pullback.
It's unclear if any instructors took pay cuts as a result, or if they left because of disagreements over compensation.
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