Shares of DraftKings Inc. DKNG, -0.71% took a 3.6% hit in premarket trading Monday, after the digital sports gaming company announced plans to offer $1 billion worth of 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 could include acquisitions and technology investments. The debt will be unsecured senior obligations, and will be convertible to cash, Class A shares or a combination of both, at the company’s election. The interest rate of the debt and conversion rate have not yet been determined. DraftKings’ stock has rallied 42.1% over the past three months through Friday, while the S&P 500 SPX, +0.04% has tacked on 6.7%.
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