Flutter Entertainment Plc is seeking to raise $1.75bn through a new round of senior secured bond notes.
Central to the push are ambitions to close its pursuit for full control of FanDuel, with the bonds being issued in three tranches of US dollars, euros and British pounds.
Furthermore, the debt raise is structured with fixed interest rates: 5.875% for USD, 4.000% for EUR, and 6.125% for GBP tranches.
The move aims to significantly bolster the US ambitions of Flutter as it looks to grow its footprint in the North American market.
Further boosting its ambitions, Flutter underlined a goal to finance the $1.7bn acquisition of Boyd Gaming’s 5% minority stake in FanDuel, granting Flutter 100% ownership of its fast-growth US subsidiary.
Roughly $1.5bn is allocated to the equity purchase, with a further $205m to extend commercial agreements with Boyd through 2038.
The updated partnership covers Indiana, Iowa, Kansas, Louisiana, and Pennsylvania, where Boyd provides crucial market access for FanDuel. Notably, the revised terms shift from revenue-share to fixed-fee arrangements, which Flutter estimates will yield $65m in annual cost savings beginning 1 July 2025.
Previously celebrating the success of the firm’s acquisition of FanDuel, CEO Peter Jackson, emphasised: “Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming.
“I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%.”
The Fox factor
Subject to customary closing conditions, including certain regulatory approvals, Flutter expects to complete its acquisition of Boyd’s stake in FanDuel in Q3 2025. Further details could be provided when the company publishes its financial report for Q2 next month on 7 August.Nonetheless, Flutter’s complete control of FanDuel may only be temporary once completed, as an option to buy 18.6% of the brand is retained by the TV company FOX. This can be triggered on or before 3 December 2030 for the price of FanDuel’s fair market value on 3 December 2020.
