Finance

DraftKings proposes $1bn senior notes offering

| By Robert Fletcher
Sports betting and daily fantasy sports operator DraftKings has announced plans to offer $1bn (£718m/€838m) in convertible senior notes via a private offering.

Due in 2028, the notes will be made available to qualified institutional buyers, with DraftKings also set grant initial purchasers a 13-day option to purchase up to an additional $150m aggregate principal amount of notes.

Upon conversion of the notes, DraftKings will settle its obligation in cash, shares of its Class A common stock or a combination of cash and shares.

Interest rates, initial conversion rate and other terms and conditions will be determined by negotiations between DraftKings and purchasers.

DraftKings said that it intends to use any proceeds from the offering for working capital and general corporate purposes, such as mergers and acquisitions and products or technology investments.

The operator also said funds would go towards the cost of privately negotiated transactions with one or more notes purchasers, their affiliates and other financial institutions.

Read the full story on iGB North America.

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