CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Related Links
Related News

Gaming News

 

Revel secures additional financing

11 November 2013

ATLANTIC CITY, New Jersey -- (PRESS RELEASE) -- Revel AC, Inc., the parent company of Revel Entertainment Group, LLC, announced today that the Company has successfully completed an amendment and restatement of its existing First-Lien Credit Agreement, dated May 21, 2013, thereby increasing the aggregate principal amount of the credit facilities under the First-Lien Credit Agreement from $75 million to $150 million.

Specifically, the principal amount of the revolving credit facility was increased from $75 million to $100 million, and was converted into two tranches consisting of (i) a Tranche A-1 having a principal amount of $25 million with no change to the previous interest rate of LIBOR plus 6.00% and (ii) a Tranche A-2 having a principal amount of $75 million with an interest rate of LIBOR plus 6.50%. The amendment and restatement also includes a new first-lien term loan facility consisting of a Tranche B having a principal amount of $50 million with an interest rate of LIBOR plus 9.00%. All interest on the Tranche B term loans are payable-in-kind in the form of an increase of the outstanding principal amount. JPMorgan Chase Bank, N.A. remains as the Administrative Agent for the facilities. Proceeds from the term loan, together with proceeds of borrowings under the revolving Tranche A-2 on the closing date, will be used to repay outstanding revolving loans of approximately $58 million under the original First-Lien Credit Agreement. Proceeds from additional revolving loans under Tranche A-1 and Tranche A-2 will thereafter be used for working capital needs.

Revel also announced that its Board of Directors has decided to explore strategic alternatives for the Company. During the Board's evaluation of possible strategic alternatives, Revel will continue operations under its current business strategy. Revel has retained Moelis & Company LLC as its financial advisor and White & Case LLP as its legal advisor.

Revel has not made any decision to pursue any specific strategic transaction or alternative, and there can be no assurance that the exploration of strategic alternatives will result in the consummation of any transaction. Revel does not intend to comment further regarding its evaluation of strategic alternatives until such time as the Board has determined the outcome of the process or otherwise has deemed that disclosure is appropriate.

< Gaming News