DraftKings

DraftKings has closed a senior secured Term Loan B facility of $700 million (upsized from $600 million) and a $750 million revolving credit facility. The Term Loan B matures in August 2033 and carries interest at SOFR plus 2.00%; the loan was issued at 99.50% of par and provides for 1% annual amortization. The revolver matures in August 2031 and replaces an existing $500 million facility; DraftKings intends to use proceeds partly to repurchase 2028 convertible notes and for general corporate purposes. » More on de.investing.com

Argus cut DraftKings from Buy to Hold, citing rising customer acquisition costs, higher state gaming taxes, market-share losses in U.S. Internet gaming and near-term costs tied to its DraftKings Predictions platform. Management says investment in Predictions will add "tens of millions" in costs while 2026 guidance assumes stable state tax rates, leaving margins exposed to tax increases. Shares are down sharply from their 52-week high and short interest has risen, though the analyst consensus remains more constructive with a $34.11 average price target. » More on finance.yahoo.com

DraftKings announced the syndication of a secured $600 million term loan B and a $750 million revolving credit facility to replace an existing $500 million line. Part of the proceeds will be used to repurchase convertible notes maturing in 2028, with the remainder for general corporate purposes. The announcement amplified investor concerns about additional leverage after weak Q2 results, in which revenue fell about 5% to $1.44 billion and average revenue per paying user dropped 13% to $132. Additional competitive pressure from platforms such as Kalshi and Polymarket, together with a weak overall market, clouds the near-term outlook. » More on de.investing.com