DraftKings upsizes term loan to $600M on strong investor demand

DraftKings went to market in February 2025 looking to borrow $500 million. Lenders showed up with enough enthusiasm that the company walked away with $600 million instead. The online sports betting and iGaming operator launched syndication for a senior secured term loan B facility on February 18, 2025, initially targeting $500 million. Demand came in strong enough to justify an upsize, and the deal closed at $600 million on March 4, 2025. The terms of the deal The loan carries an interest rate of SOFR plus 1.75% per annum. It was issued at 99.50 cents on the dollar, meaning investors paid slightly below face value, a standard structure that gives lenders a modest yield boost at closing. The facility matures in March 2032, giving DraftKings a seven-year runway before repayment. Annual amortization is set at 1% of the principal, which translates to roughly $6 million per year in mandatory paydowns. Proceeds are earmarked for general corporate purposes. As of mid-2026, the term loan B carried a balance of approximately $575 million on DraftKings’ books, net of issuance costs, reflecting the modest amortization schedule working as designed. Why this matters for DraftKings Raising $600 ...