DraftKings has launched a $600 million senior secured term loan B. The company intends to use the proceeds to repurchase a portion of its convertible notes due in 2028. This move aims to optimize its capital structure and potentially reduce interest expenses.
Additionally, DraftKings is replacing its existing $500 million credit facility with a $750 million senior secured revolving credit facility. This upsized facility matures in 2031 and enhances the company's financial flexibility. DraftKings expects the new revolving facility to remain largely undrawn at closing.
Both financing initiatives are subject to market conditions.