DraftKings Launches $600M Term Loan, Upsizes Revolver to $750M
DKNG sits 24% above its 52-week low of $20.46 on light trading volume (0.4× avg).
Summary
DraftKings is raising $600M via a senior secured Term Loan B and replacing its $500M revolver with a new $750M facility maturing 2031. Proceeds will partly repurchase 2028 Convertible Notes, reducing near-term dilution risk. The move strengthens liquidity after a weak Q2 that saw revenue miss and a net loss. The new revolver is expected to remain largely undrawn, signaling a liquidity backstop rather than immediate cash need. Watch for pricing terms on the Term Loan B and the size of the convertible note repurchase.
At the time of this announcement, DKNG was trading at $25.47 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $12.6B. The 52-week trading range was $20.46 to $48.78. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Benzinga.