8/29/2022: (In)famous Peloton Interactive Inc., announced – as reported on CNBC – a number of cost cutting measures in a continuing effort to improve business performance and its stock price.
From a BDC perspective, four different players – including two public ones – have recently added exposure to the company. At cost, the aggregate at risk – all in senior debt due in May 2027 – is $10.4mn. The BDCs involved are BlackRock Capital (BKCC); BlackRock TCP Capital (TCPC(); BlackRock Direct Lending and Oaktree Strategic Income Fund.
The BDC Credit Reporter has added Peloton to its underperformers list as of the IIQ 2022, with a rating of CCR 3, due to concerns the company may not successfully implement its turnaround plans. Admittedly, the amount at risk are not significant – either in total or individually – but we’ll check back in regularly over what may be a long period to ascertain Peloton’s credit status.