DraftKings Inc. Shares DKNG,
received 3.6% in premarket trading on Monday after digital sports gaming company announced plans to offer a $ 1 billion convertible debt. The private offer will be made to qualified institutional investors. DraftKings plans to use the benefits of the offering for working capital and general corporate purposes, which could include technology acquisitions and investments. The debt will be unsecured senior bonds and will be convertible into cash, Class A shares or a combination of both, at the company’s election. Debt interest rate and conversion rate have not yet been determined. Shares of DraftKings have risen 42.1% in the past three months to Friday, while the S&P 500 SPX,
has attacked 6.7%.