DraftKings has launched syndication for a proposed $600m senior secured term loan B facility alongside a new $750m revolving credit facility intended to expand its available liquidity.
The operator plans to use the net proceeds from the term loan to repurchase part of its outstanding convertible notes due in 2028, subject to availability and market conditions. Any remaining proceeds may be allocated to general corporate purposes.
DraftKings did not disclose the proposed term loan’s pricing, maturity date or the proportion of the convertible notes it could repurchase. The transaction would alter the composition of the company’s borrowing by using new senior secured debt to address part of its existing convertible obligations.
In connection with the term loan, DraftKings has also launched syndication of and obtained commitments for a $750m senior secured revolving credit facility. The new facility will mature in 2031 and replace an existing $500m revolver scheduled to mature in 2029.
The replacement increases DraftKings’ revolving capacity by $250m, or 50%, while extending the facility’s maturity by two years. The company said the additional capacity would enhance liquidity and provide greater financial flexibility.
Borrowings under the revolver may be used for general corporate purposes. However, DraftKings expects the facility to remain substantially undrawn when the financing closes, indicating that it is primarily intended to provide access to liquidity rather than immediate operating funds.
Both financing arrangements remain subject to market and other conditions. Consequently, the launch of syndication and receipt of commitments do not constitute completion of the transactions.
The financing announcement follows mixed financial results during 2026. DraftKings’ Q2 revenue fell 4.6% to $1.44bn, while the company recorded a $67.6m net loss and a 61.9% decrease in adjusted EBITDA. H1 revenue nevertheless increased 5.8% to $3.09bn, following Q1 growth of 16.8% and net income of $21.1m.
DraftKings maintained full-year guidance of $6.5bn to $6.9bn in revenue and $700m to $900m in adjusted EBITDA.
DraftKings is also investing in its prediction-market operations. The company launched proprietary exchange DKeX in June using technology and a CFTC licence acquired through Railbird Technologies, and has since filed contracts covering football markets and multi-leg products ahead of the NFL season.
The new revolving facility increases DraftKings’ available capacity by 50% and extends its maturity from 2029 to 2031
