Shares of DraftKings Inc. DKNG,
hit a 3.6% hit in pre-trading on Monday, after the digital sports betting company planned to offer $ 1 billion in convertible debt. The private offering will be made to qualified institutional investors. DraftKings plans to use the proceeds from the offering for working capital and general corporate purposes, which may include acquisitions and technology investments. The debt will be unsecured senior liabilities and can be converted into cash, Class A shares or a combination of both during the election of the company. The interest rate of the debt and the exchange rate have not yet been determined. DraftKings’ share has risen 42.1% over the past three months to Friday, while the S&P 500 SPX,
achieved an increase of 6.7%.
