DraftKings has raised $600 million through a senior secured term loan B facility, up from its initial target of $500 million. The seven-year loan carries an interest rate of SOFR plus 1.75% and was issued at 99.50 cents on the dollar, maturing in March 2032. This debt financing allows the online gambling company to fund general corporate purposes without diluting existing shareholders, unlike an equity raise would. The 175 basis points spread over SOFR signals lender confidence in DraftKings’ financial strength in an expanding market that has grown significantly since the 2018 Supreme Court ruling that allowed states to legalize sports betting.
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