Peloton Interactive, which sells connected home fitness equipment and monthly class subscriptions, filed an amendment with the SEC on Tuesday, disclosing that existing shareholder Technology Crossover Ventures plans to double its investment in the previously disclosed concurrent private placement. The company also disclosed new developments in the ongoing lawsuit filed against it by Downtown Music Publishing.
TCV plans to buy an additional 1.8 million shares to invest $100 million in the private placement; it had previously agreed to invest $50 million. Peloton still plans to raise $1.1 billion by offering 40 million shares at a price range of $26 to $29, and it would command a $9.0 billion market cap at the midpoint.
Peloton is the target of a lawsuit filed by Downtown Music Publishing, which claims that the company had been using music on its platform without the necessary licenses. Peloton disclosed that Downtown Music Publishing is now seeking to file a second amended complaint identifying additional musical works and requesting injunctive relief, more than $300 million in damages, and attorneys’ fees and costs.
Peloton Interactive was founded in 2012 and booked $915 million in sales for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol PTON. Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Barclays, UBS Investment Bank, and Cowen are the joint bookrunners on the deal. It is expected to price during the week of September 23, 2019.
