DraftKings Inc. (DKNG) · Aug 25, 2026 · New debt

DraftKings closes $1.45B debt package, adding leverage to fund note buybacks

$700M term loan — Term loan increased to $700M from previously announced $600M

DraftKings secures longer-dated funding and stronger-than-planned demand, but adds $700M of debt while refinancing convertible notes.

The financing itself was largely expected. DraftKings closed facilities it had already announced, so the event confirms execution more than it introduces a new strategic move. (Press release — financing announcement)

The main surprise was stronger demand for the term loan. The facility was increased to $700 million from $600 million, giving DraftKings $100 million more borrowing capacity than previously planned. (Press release — term loan)

Funding terms are reasonably favorable for a new borrowing. The term loan matures in August 2033, carries SOFR plus 2.00%, and was issued at 99.50% of par; the long maturity reduces near-term refinancing pressure, while the pricing and discount indicate lenders accepted the risk. (Press release — term loan)

Liquidity expands, but leverage also rises. DraftKings replaces its $500 million revolver with a $750 million facility and adds the $700 million term loan, with proceeds intended partly for repurchases of its 2028 convertible notes rather than purely for growth investment. 〔0〕 (Press release — use of proceeds)

Net: a mixed financing read, not a clean beat. Against the filing’s only clear benchmark—the previously announced $600 million term loan—the upsizing and successful close are constructive. But the company is also taking on substantial new secured debt, and the filing provides no published earnings-style consensus against which to call the financing an outright positive surprise.

What to watch next

Potential 2028 Convertible Notes repurchases

Original filing on SEC EDGAR

More DraftKings Inc. news

DraftKings closes $1.45B debt package, adding leverage to fund note buybacks | DKNG Stock News
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