Shares of DraftKings Inc. DKNG,
had a 3.6% success in premarket trading on Monday after the digital sports game company announced plans to offer $ 1 billion in convertible debt. The private offer will be made to qualified institutional investors. DraftKings intends to use the proceeds of the offering in working capital and general corporate purposes, which may include acquisitions and investments in technology. The debt will be unsecured senior bonds and will be convertible into cash, Class A shares or a combination thereof, at the election of the Company. The debt interest rate and the conversion rate have not yet been set. DraftKings shares rose 42.1% in the last three months to Friday, while the S&P 500 SPX,
back 6.7%.