DraftKings plans $1 Billion notes offering

Business News

DraftKings has announced its intention to offer $1 billion aggregate principal amount of convertible senior notes in a private offering to persons reasonably believed to be qualified institutional buyers.

DraftKings said the money it earns from the notes will be used for “working capital and general corporate purposes.” The company already has $1.8 billion in cash on hand, making the reason for sale and its potential share dilution opaque, given the sports betting operator’s ample liquidity.

DraftKings’ statement also said the money could go to funding “mergers and acquisitions and products or technology investments that DraftKings may identify in the future,” raising the possibility the company is eyeing a major acquisition.