Revel Secures Additional Financing
ATLANTIC CITY, N.J., Nov. 8, 2013 /PRNewswire/ -- 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.
Revel Casino Hotel: Gamblers Wanted. Revel offers casino players the newest and most expansive casino resort in the history of Atlantic City. Located along the city's world-famous boardwalk, and designed to offer endless views of the Atlantic Ocean, the casino offers 130,000 square feet of gaming space, the largest contiguous smoking casino in Atlantic City, 2,400 slots, 130 table games, the high-limit Pearl Slot Lounge and high-limit table game Ultra Lounge. Revel Casino features 1,399 ocean view rooms, indoor and outdoor pools, gardens, lounges, a 32,000-square-foot spa, 14 restaurants serving world-class cuisine and down-home favorites, a collection of boutiques, nightclubs, a dayclub and live entertainment on its stages at The Social and Ovation Hall. Casino Player Magazine "Best of 2013" honored Revel Casino with over 20 Awards including Best Overall Gaming Resort, Best Casino, Best Hotel, Best Rooms, Best Comps, and Best Promotions.
For additional information and updates, and for complete details and rules of all promotions, customers can visit the Revel Card desk or visit www.revelcasino.com.
Statements in this press release that are not statements of historical or current fact constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could impact the Company's objectives and plans or cause the actual results of the Company to differ significantly from the historical results or from any future results expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to competition in the casino, hotel and resort industries, levels of travel, leisure and casino spending, general domestic or international economic conditions, and changes in gaming laws or regulations. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," "plans," or similar terms to be uncertain and forward-looking.
SOURCE Revel Casino Hotel