DraftKings to sell $1.15bn in convertible notes

DraftKings will sell the notes through a private offering to institutional investors.
DraftKings will sell the notes through a private offering to institutional investors.

The funds will be raised for general corporate purposes, which may include acquisitions or investments in products or technology.

US.- Sports betting operator DraftKings is to sell $1.15bn of convertible notes due in 2028 through a private offering made to qualified institutional investors.

Initial purchasers will also be given a 13-day option to purchase up to an additional $150m aggregate principal amount of notes.

The debt will be unsecured senior obligations, convertible to cash, Class A shares or a combination of both based on the company’s choice. The interest rates of the debt and conversion rate have not yet been determined. 

DraftKings said it intends to use the funds for “general corporate purposes, which may include mergers and acquisitions and products or technology investments.”

Expansion is on the company’s agenda. It announced at its investor event last week that it projects the US market will grow to a value of $67bn.

Casino operator Wynn Resorts also announced last month that it hopes to raise $630.6m in a public offering of 5.5m shares of common stock at $116.99 per share.

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