Revel AC gets extended interim access to $25 million of DIP financing

By Kali Hays

New York, Sept. 22 – Revel AC, Inc. received extended access to $25 million of its proposed $125 million debtor-in-possession loan under a fourth amendment to an interim DIP order approved on Monday by the U.S. Bankruptcy Court for the District of New Jersey.

The maturity date of the interim loan amount is Oct. 7, which is also the date of the next interim hearing on the DIP financing.

A final hearing is set for Oct. 20.

As previously reported, Revel AC received continued access to the loan amount through Sept. 15 under a third amendment to the interim DIP order.

The DIP facility is designed to give Revel the liquidity necessary to operate its business while it moves forward with a sale process.

Arranged by one of the company’s existing lenders, the loan includes some roll-up amounts. Specifically, $41.9 million of the proposed financing is new money.

Wells Fargo Bank, NA is the DIP agent, and Wells Fargo Principal Lending, LLC is a lender and the lead arranger.

The loan is scheduled to mature on the earliest of Oct. 31, subject to extension to allow for receipt of any gaming approvals required for the plan to take effect, but no later than Jan. 31, 2015; the plan effective date; and the closing of an asset sale.

Interest is Libor plus 600 basis points.

Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on June 19. The Chapter 11 case number is 14-22654.

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