DraftKings Inc. Announces $700M Term B Loan and $750M Revolver

What Happened
DraftKings Inc. announced on August 25, 2026 that it entered into a second amendment to its credit agreement, creating a $700 million incremental Term B loan facility and a $750 million senior secured revolving credit facility. The New Term B Facility (borrower: DK Crown Holdings Inc.) matures August 25, 2033 and is intended to help fund repurchases of certain 0% Convertible Senior Notes due 2028 and other general corporate purposes. The New Revolving Credit Facility matures August 25, 2031 and replaces the company’s prior $500 million revolver.

Key Details

• New Term B Facility: $700 million aggregate principal; maturity August 25, 2033; borrower DK Crown Holdings Inc.; 1.00% per annum principal amortization payable quarterly.
• New Revolving Credit Facility: $750 million capacity; maturity August 25, 2031; replaces prior $500 million revolver.
• Pricing: Term B loans — Term SOFR + 2.00% or ABR + 1.00%; Revolver — Term SOFR + 1.75%–2.25% (or base rate + 0.75%–1.25%), margins vary with Net First Lien Leverage Ratio. Commitment fee on unused revolver: 0.25%–0.375% per annum.
• Prepayment: A 1.00% prepayment premium applies if Term B is repaid within six months in a “Repricing Event.” Morgan Stanley Senior Funding, Inc. serves as administrative agent.

Why It Matters
This amendment increases DraftKings’ liquidity and extends debt maturities—adding longer‑dated term debt and a larger revolver—which can provide more flexibility for cash needs and potential debt or note repurchases. The filing specifies that proceeds may be used to repurchase DraftKings Holdings Inc.’s convertible notes due 2028, which could reduce future dilution or interest obligations. Pricing and amortization terms will affect interest expense and cash flow; covenants and default provisions remain largely unchanged from the prior agreement.