Home / Business and Economy / DraftKings Secures $1.45 Billion in New Financing
DraftKings Secures $1.45 Billion in New Financing
22 Aug
Summary
- DraftKings closed a $700 million term loan to repurchase convertible notes.
- A new $750 million revolving credit facility replaces the existing one.
- The company's corporate ratings are BB/B1/BB+.
DraftKings recently completed a significant financing transaction, securing a $700 million covenant-lite first-lien term loan. This loan, upsized from an initial $600 million, was priced at S+200 with a 0% floor and an issue price of 99.5. Proceeds are earmarked for repurchasing a portion of the company's convertible notes maturing in 2028.
The company also established a new $750 million senior secured first-lien revolving credit facility, which is set to mature in August 2031. This new facility will supersede DraftKings' existing revolving credit line, enhancing its financial flexibility.
Following these transactions, DraftKings holds corporate ratings of BB/B1/BB+. The facility ratings have been firmed at BBB-/Ba3/BBB-, with recovery ratings of 1 from S&P Global Ratings and Fitch. Moody's adjusted its facility rating downward due to the evolving capital structure.
