DraftKings seeks $600 million loan to retire convertible debt

DraftKings has launched the syndication of a proposed $600 million senior secured term loan B to facilitate the retirement of its existing convertible notes due in 2028. The Boston-based sports betting operator also secured commitments for a new $750 million revolving credit facility maturing in 2031, which is intended to replace its current $500 million revolver.

The company aims to use the proceeds primarily to buy back a portion of its convertible notes, which stood at $1.26 billion net of issuance costs as of June 30, 2026. By swapping zero-coupon convertible debt for a secured term loan, DraftKings seeks to avoid equity dilution for existing shareholders. Unlike the convertible notes, the term loan B carries a floating interest rate and does not convert into equity.

This move follows a previous debt expansion in early 2025, when strong investor demand allowed the company to upsize an initial $500 million loan target to $600 million. The new transactions remain subject to market conditions and the completion of the syndication process.