Peloton's debt is a major concern. How are they managing it?

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Peloton Interactive News

Simeon Siegel

Peloton Interactive (PTON) has reportedly hired JPMorgan to help it raise $850 million in a new loan sale to settle its debts. The fitness equipment brand...

BMO Capital Markets Managing Director and Senior Analyst Simeon Siegel comments on Peloton's ability to manage its current debt and where it should focus its attention to retain consistent consumers.

And so I think what my suggestion would be and has been as you bear hug your brand loyalist, you focus on the fact that there is a very healthy business with incredible cash flow that could deal with the 1.7 billion of debt.But to do that, you have to acknowledge you're not an uber growth business.

And so I believe that if Peloton wanted to just focus on that core, existing user base, I don't even have to grow into a cash flowing business.All they need to do is focus on that and stop trying to believe that there's massive growth.The problem is you and I have been talking about this for years where it's not what they wanted to do.I think what they need to protect, they need to make sure they don't bleed their existing users.

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