DraftKings is looking to raise $500 million via a new term loan. The gaming company on Monday morning announced the launch of a syndication for the proposed $500 million credit facility, to be used for "general corporate purposes.

DraftKings stock fell on Tuesday after the online sports betting company launched a $500 million debt raise. In midday trading, shares were off 5.4% to $50.59. Launch of the Term B credit facility—a loan made by institutional investors such as pension funds or insurance companies instead of by banks—was announced in the early morning.