DraftKings Amends Credit Agreement, Securing $700M Term Loan and $750M Revolver

DraftKings Inc. has entered into a second amendment to its credit agreement, establishing a new $700 million incremental term loan facility and a new, upsized $750 million senior secured revolving credit facility. The new revolving facility replaces and increases the company's previous $500 million facility. Proceeds from the new term loan are intended to be used for repurchasing a portion of the company's outstanding 0% Convertible Senior Notes due 2028.

Key Details

• New Term Loan: A new $700 million incremental term loan (New Term B Facility) maturing on August 25, 2033. Net proceeds are intended for repurchasing a portion of its convertible notes due 2028 and for general corporate purposes.
• New Revolving Credit Facility: A new $750 million senior secured revolving credit facility maturing on August 25, 2031, which replaces and increases the company's previous $500 million facility that was scheduled to mature in 2029.
• Interest Terms: The New Term B Loans will bear interest at Term SOFR + 2.00% or ABR + 1.00%. The new revolving facility will bear interest at Term SOFR plus a margin ranging from 1.75% to 2.25%, depending on the company's Net First Lien Leverage Ratio.