DraftKings Holdings Inc. has completed a $700 million term loan and a $750 million revolving credit facility, the company announced on Tuesday.
The term loan, initially sized at $600 million, was upsized to $700 million due to strong investor demand. Priced at 99.50% of par, the facility carries an interest rate of Secured Overnight Financing Rate plus 2.00% annually and includes a 1.00% annual principal repayment requirement. The loan matures in August 2033.
The new revolving credit facility replaces a $500 million senior secured revolving credit facility scheduled to mature in November 2029. The expanded $750 million facility covers revolving loans, swing line borrowings, and letters of credit, with a maturity date of August 2031.
Proceeds from the transactions will be used primarily to repurchase a portion of DraftKings Holdings Inc.’s outstanding 2028 convertible notes, subject to availability and market conditions, as well as for general corporate purposes.
