On December 10, 2021, Peloton Interactive, Inc. (the “Company”) entered into a Second Amendment (the “Second Amendment”) to that certain Amended and Restated Revolving Credit Agreement, dated June
On December 10, 2021, Peloton Interactive, Inc. (the “Company”) entered into a Second Amendment (the “Second Amendment”) to that certain Amended and Restated Revolving Credit Agreement, dated June 20, 2019 (as amended by the First Amendment, dated as of February 8, 2021), by and among the Company and JPMorgan Chase Bank, N.A., as administrative agent, lead arranger and bookrunner, and Barclays Bank PLC, Citibank, N.A. and Goldman Sachs Bank USA, as joint syndication agents (the “Credit Agreement”).
The Second Amendment amends certain provisions of the Credit Agreement to, among other changes, increase the lenders’ aggregate commitments to extend credit to the Company from an aggregate amount of $285.0 million in revolving loans to an aggregate amount of $500.0 million in revolving loans, extend the maturity date for $465.0 million of the commitments to December 10, 2026, with $35.0 million of the commitments expiring on June 20, 2024, and modify certain covenants contained therein.
The Credit Agreement contains customary affirmative covenants as well as customary covenants that restrict the Company’s ability to, among other things, incur additional indebtedness, sell certain assets, guarantee obligations of third parties, declare dividends or make certain distributions, and undergo a merger or consolidation or certain other transactions. The Credit Agreement also contains certain financial condition covenants, including maintaining a total level of liquidity of not less than $250.0 million and maintaining a minimum total four-quarter revenue level of $3.0 billion (which are replaced with a covenant to maintain a minimum debt to adjusted EBITDA ratio upon the Company’s meeting a specified adjusted EBITDA threshold).
The foregoing description of the Second Amendment is qualified in its entirety by reference to the terms of the Second Amendment, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending December 31, 2021.