DraftKings Secures $600m Term Loan and Extends $750m Credit Facility

DraftKings has announced the completion of a $600m Term Loan B (TLB) syndication and secured commitments for a new $750m revolving credit facility, both moves designed to address its debt profile and provide additional financial flexibility. Proceeds from the TLB will predominantly go towards repurchasing a portion of the operator’s convertible notes due 2028, while some funds have been allocated for general corporate use. The revolving credit facility, which matures in 2031, will replace an existing $500m arrangement previously set to expire in 2029, and is expected to remain substantially undrawn at closing.

DraftKings’ $600m TLB Credit Facility: Purpose and Terms

The New York-listed DraftKings said the newly syndicated $600m Term Loan B aims primarily at reducing near-term debt pressure. By buying back a part of its convertible notes (set to mature in 2028), the operator plans to manage liability timelines and interest costs. Any remaining capital not used for note repurchases will be set aside for general corporate objectives.

DraftKings clarified that the final use of both the TLB and revolving credit instruments remains subject to market and closing conditions. The company gave no further information on pricing, covenants, or lead banks behind the syndication.

Expanded $750m Revolving Credit Facility Maturing 2031

Alongside the TLB, DraftKings has obtained commitments for a new $750m revolving credit facility. This replaces the company’s earlier $500m facility that was scheduled to mature in 2029, with the new commitment stretching the maturity out to 2031.

DraftKings said it does not plan to tap this revolving facility immediately, indicating it "expects the facility to remain substantially undrawn at closing." The facility is designed as an extra buffer for liquidity or opportunistic capital needs. A portion may be used toward general corporate purposes but remains subject to ongoing market conditions.

Financial Context: Liabilities, Stock Reaction and Q2 Results

DraftKings’ share price declined by 3.2% to $25.30 on 17 August following the financing news. The stock is down 29% year-to-date, hitting lows below $22 earlier in August.

As of 30 June 2026, total liabilities came to $3.71bn, split between $1.3bn in convertible notes and $574.6m outstanding under the existing TLB agreement. Revenue for the second quarter stood at $1.4bn, representing a 5% decline compared to the same period in 2025. The company posted a net loss of $67.6m for Q2 2026, a reversal from the $157.9m profit reported in Q2 of the previous year.

"We are positioning DraftKings to manage our debt profile while supporting ongoing product development," CEO Jason Robins stated during the Q2 earnings call.

New Offerings: Prediction Markets and Platform Strategy

The latest quarterly report was the first to include data from DraftKings’ prediction markets product. Annualised trading volume reached $11bn, signalling early scale but with no direct impact on overall profitability this quarter. Robins confirmed on the earnings call that DraftKings aims to move its Predictive Markets activity fully onto its proprietary in-house platform, a shift that could alter tech and operational expenses in subsequent quarters.

Forward Outlook: Revenue and EBITDA Guidance

DraftKings’ updated outlook for 2026 puts full-year revenue in the $6.5bn to $6.9bn range, with adjusted EBITDA guidance between $700m and $900m. The revised financing package—combining the new $600m TLB and extended $750m revolver—provides added certainty as the operator navigates pressured revenues and ongoing investment in new products, particularly in a challenging sports betting market and rapidly evolving US environment.

Debt Strategy in a Competitive Environment

DraftKings’ approach of pairing targeted convertible note repurchases with expanded credit availability is consistent with large US operators seeking to preserve optionality amid market volatility. The company’s overall debt structure is now more laddered, with maturities stretching beyond 2030, offering increased flexibility in both capital planning and product rollout across the highly competitive regulated US casino and sports betting sectors.