DraftKings Announces Launch of $500 Million Term Loan B Facility
DraftKings (DKNG) has announced the launch of syndication for a proposed $500 million senior secured term loan B credit facility. The company plans to use the net proceeds from this Term Loan B for general corporate purposes. The completion of this credit facility is subject to market and other conditions.
DraftKings (DKNG) ha annunciato il lancio della sindacazione per un prestito senior garantito a termine B del valore di 500 milioni di dollari proposto. L'azienda prevede di utilizzare i proventi netti di questo prestito a termine B per scopi aziendali generali. Il completamento di questa linea di credito è soggetto a condizioni di mercato e altre condizioni.
DraftKings (DKNG) ha anunciado el lanzamiento de la sindicación para un préstamo senior garantizado a plazo B de 500 millones de dólares propuesto. La empresa planea utilizar los ingresos netos de este Préstamo a Plazo B para fines corporativos generales. La finalización de esta línea de crédito está sujeta a condiciones de mercado y otras condiciones.
DraftKings (DKNG)는 제안된 5억 달러 규모의 선순위 담보 대출 B의 배급을 시작한다고 발표했습니다. 회사는 이 대출 B의 순수익을 일반 기업 목적에 사용할 계획입니다. 이 신용 시설의 완료는 시장 및 기타 조건에 따라 달라집니다.
DraftKings (DKNG) a annoncé le lancement de la syndication pour un prêt senior garanti à terme B de 500 millions de dollars proposé. La société prévoit d'utiliser les produits nets de ce prêt à terme B à des fins corporatives générales. L'achèvement de cette facilité de crédit est soumis aux conditions du marché et à d'autres conditions.
DraftKings (DKNG) hat den Start der Syndizierung für ein vorgeschlagenes 500 Millionen Dollar Senior Secured Term Loan B Kredit bekannt gegeben. Das Unternehmen plant, die Nettomittel aus diesem Term Loan B für allgemeine Unternehmenszwecke zu verwenden. Der Abschluss dieser Kreditfazilität unterliegt Markt- und anderen Bedingungen.
- Access to significant additional capital ($500M) through debt financing
- Senior secured status of the loan indicates favorable lending terms
- Increased debt burden and future interest expenses
- Additional leverage on the balance sheet
Insights
The launch of a
The secured nature of this facility is particularly noteworthy. By pledging collateral, DraftKings is likely to secure more favorable interest rates in the current high-rate environment, potentially saving millions in annual interest expenses compared to unsecured alternatives. This approach demonstrates prudent financial management, especially considering the company's market capitalization of
The timing of this debt raise is strategic, coming at a period when the gaming industry is experiencing significant growth and consolidation. While the stated use for "general corporate purposes" maintains flexibility, this facility could support various strategic initiatives, including:
- Market expansion opportunities in newly regulated jurisdictions
- Technology infrastructure investments to maintain competitive advantages
- Strategic M&A opportunities in the rapidly evolving gaming sector
- Working capital optimization during peak sporting seasons
From a balance sheet perspective, this facility demonstrates DraftKings' ability to access institutional debt markets, which typically signals market confidence in the company's business model and cash flow generation capabilities. The Term Loan B structure also allows for potential prepayment without significant penalties, providing valuable financial flexibility as the company continues to scale.
BOSTON, Feb. 18, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) (the “Company” or “DraftKings”) today announced the launch of syndication for a proposed senior secured term loan B credit facility (the “Term Loan B”) in an aggregate principal amount of
DraftKings intends to utilize the net proceeds of the Term Loan B for general corporate purposes.
About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming, and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in three states under its Golden Nugget Online Gaming brand. DraftKings owns Jackpocket, the leading digital lottery app in the United States. DraftKings’ daily fantasy sports product is available in 44 states and certain Canadian provinces. DraftKings is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings’ future results of operations or financial condition, strategic plans and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “confident,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “going to,” “intend,” “may,” “plan,” “poised,” “potential,” “predict,” “project,” “propose,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings’ ability to manage growth; DraftKings’ ability to execute its business plan and meet its projections; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming; general economic and market conditions impacting demand for DraftKings’ products and services; economic and market conditions in the media, entertainment, gaming, and software industries in the jurisdictions in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, including inflation, rising interest rates and instability in the banking system, on DraftKings’ liquidity, operations and personnel, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, including a failure to consummate the Term Loan B financing on the terms described herein or at all, as well as the risks, uncertainties, and other factors described in “Risk Factors” in DraftKings’ filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management’s current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.
Contacts
Media:
Media@draftkings.com
@DraftKingsNews
Investors:
Investors@draftkings.com
FAQ
What is the size of DraftKings (DKNG) new Term Loan B facility announced in February 2025?
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