Due in 2028, the notes will be made available to qualified institutional buyers, with DraftKings also set grant initial purchasers a 13-day option to purchase up to an additional US$150m aggregate principal amount of notes.
Upon conversion of the notes, DraftKings will settle its obligation in cash, shares of its Class A common stock or a combination of cash and shares.
Interest rates, initial conversion rate and other terms and conditions will be determined by negotiations between DraftKings and purchasers.
DraftKings said that it intends to use any proceeds from the offering for working capital and general corporate purposes, such as mergers and acquisitions and products or technology investments.
The operator also said funds would go towards the cost of privately negotiated transactions with one or more notes purchasers, their affiliates and other financial institutions.
The proposed notes offering comes after DraftKings last week upped its long-term EBITDA (earnings before interest, tax, depreciation and amortisation) guidance to US$1.7bn, following strong igaming results in 2020.
Source: iGB North America
