Bonds & Rates
Home›Bonds & Rates›Central Banks›DraftKings launches $600 million term loan syndication
DraftKings launches $600 million term loan syndication
The net proceeds from the proposed $600 million Senior Secured Term Loan B are slated for a portion of its 2028 convertible notes repurchase, plus general corporate purposes.
DraftKings said it has launched syndication for a proposed $600 million Senior Secured Term Loan B credit facility, with net proceeds intended to repurchase a portion of its existing Convertible Notes due 2028 and fund general corporate purposes, Yahoo Finance reported. The company also secured commitments for a new $750 million senior secured revolving credit facility maturing in 2031, intended to replace its current $500 million revolver due 2029. Management expects the new facility to be substantially undrawn at closing, which it said will boost liquidity and extend its maturity profile.
The financing update comes after a mixed Q2 2026 earnings report, where revenue declined 4.6% year over year to $1.443 billion and the company recorded a net loss of $67.6 million, or $0.14 per share, versus net income of $157.9 million in Q2 2025. Adjusted EBITDA fell to $114.6 million from $300.6 million a year earlier, driven in part by about $80 million in customer-friendly sports outcomes and intentional over-investment in new customer acquisition.
DraftKings left its full-year 2026 guidance unchanged at $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in Adjusted EBITDA. The article also notes core operations are expected to deliver about $1 billion in EBITDA, before accounting for a $200 million to $300 million growth investment in Predictions.