Flutter secures $1.75 billion in bond sales to gain complete ownership of FanDuel
In a significant move to consolidate its position in the U.S. online sports betting and iGaming market, Flutter Entertainment Plc has issued approximately $1.75 billion in senior secured bridge loan notes. This funding will enable the betting giant to acquire the remaining 5% stake in FanDuel from Boyd Gaming, thereby gaining full ownership of the leading U.S. operator valued at around $31 billion.
The $1.75 billion senior secured bridge loan is structured to mature in 12 months with two six-month extension options. The interest on the loan is set at Term SOFR plus 1.25%, reflecting Flutter's strong creditworthiness. This strategic approach to capital allocation allows Flutter to maintain a long-term net debt to EBITDA ratio of 2.0–2.5x, despite temporarily increasing leverage.
The financing supports Flutter's strategic goal to consolidate full control of FanDuel, aiding operational efficiency and maximizing profitability in the U.S. sports betting market. Alongside the acquisition, Flutter and Boyd extended their commercial partnership to 2038. Boyd will now receive fixed fees rather than revenue shares for market access in certain states, reducing Flutter's annual costs by approximately $65 million from July 2025 onward.
Control of Boyd-operated retail sportsbooks will revert to Boyd by Q2 2026, allowing Flutter to focus on scaling FanDuel's digital operations. The new offering is an addition to the existing debt instruments issued by Flutter Entertainment Plc in 2025. The bonds offered by Flutter Entertainment Plc are listed on The International Stock Exchange (TISE).
This new issue of senior secured bond notes is structured for Flutter Entertainment Plc's US dollars, euros, and British pounds debt. The funds raised by Flutter Entertainment Plc will be used to accelerate its push for full control of its US sports betting unit, FanDuel. The debt raise has fixed interest rates: 5.875% for USD, 4.000% for EUR, and 6.125% for GBP tranches.
Sources: [1] SBC News (2022). Flutter Entertainment secures $1.75bn financing to acquire remaining 5% stake in FanDuel. [online] Available at: https://sbcnews.co.uk/news/flutter-entertainment-secures-1-75bn-financing-to-acquire-remaining-5-stake-in-fanduel/
[2] Reuters (2022). Flutter Entertainment to buy rest of FanDuel for $1.76 billion. [online] Available at: https://www.reuters.com/business/media-telecom/flutter-entertainment-to-buy-rest-of-fanduel-for-1-76-billion-2022-03-08/
[3] Yahoo Finance (2022). Flutter Entertainment to buy remaining stake in FanDuel for $1.76 billion. [online] Available at: https://finance.yahoo.com/news/flutter-entertainment-buy-remaining-stake-180000969.html
The financing of approximately $1.75 billion will be used to aid Flutter Entertainment in acquiring the remaining 5% stake in FanDuel, a leading U.S. operator in the sports betting market. This strategic move is expected to boost financial gains for Flutter Entertainment in the sports sector.
