DraftKings Launches $500 Million Term Loan B Facility

DraftKings has announced the launch of a syndication for a proposed $500 million senior secured term loan, which will be used for general corporate purposes. The company's stock saw a decline of approximately 5% following the announcement. Fitch Ratings assigned DraftKings a 'BB+' long-term issuer rating, citing its strong market position and conservative financial structure, despite the inherent volatility in sports betting. DraftKings finished the year with significant cash reserves, which supports its capacity for strategic investments in marketing and acquisitions. CEO Jason Robins indicated the company is exploring debt options to optimize its capital structure while maintaining a prudent approach to leverage. DraftKings has been actively expanding its portfolio through acquisitions, including lottery app Jackpocket and gambling tech provider SimpleBet.