Shares of DraftKings Inc. DKNG,
had a 3.6% drop in pre-market trading on Monday after the digital sports company announced plans to offer $ 1 billion in convertible debt. The private offering will be made to qualified institutional investors. DraftKings plans to use the offering’s resources for working capital and corporate purposes in general, which may include acquisitions and investments in technology. The debt will be a senior unsecured bond and will be convertible into cash, Class A shares or a combination of both, at the company’s choice. The debt interest rate and the conversion rate have not yet been determined. DraftKings shares were up 42.1% in the last three months through Friday, while the S&P 500 SPX,
rose 6.7%.
