Revel AC gets final approval for $250 million DIP financing facility

By Jim Witters

Wilmington, Del., April 18 - Revel AC Inc. received final approval for $250 million in debtor-in-possession financing, including $42 million in new money, according to an April 18 press release from the company.

The approval by the U.S. Bankruptcy Court for the District of New Jersey came despite an objection from the official committee of unsecured creditors filed on April 17.

The committee said it filed the objection "reluctantly" after Revel declined requests to postpone final DIP approval to afford the committee time to fully examine the DIP facility paperwork.

The committee was formed on April 15 and had insufficient time to resolve issues in the DIP agreement and order, the objection states.

"The debtors' sole objective appeared to be preventing the formation of an effective committee, which the committee was forced to resist," the filing says.

Revel filed a pre-packaged bankruptcy that was unanimously accepted by voting creditors voting.

"The final orders granted today are another positive milestone in our financial restructuring. We look forward to emerging from this process positioned for long-term success with a right-sized balance sheet, greater casino floor appeal, and the ability to continue providing our guests with a personalized Revel experience," said Revel CEO Jeffrey Hartmann.

The company said it expects to emerge from bankruptcy early in the summer.

DIP terms

As previously reported, a group of Revel's lenders will provide $250 million in DIP financing, $42 million of which constitutes new money commitments and $208 million of which constitutes pre-bankruptcy debt.

JPMorgan Chase Bank, NA is the administrative agent. J.P. Morgan Securities LLC is the arranger and bookrunner.

The DIP term loan and the DIP revolving credit facility will each mature on the earliest of May 30, subject to an extension up to June 15 based on receipt of regulatory approvals needed for plan effectiveness, the plan effective date and the acceleration of the loans.

Interest on term loans will be either the alternative Base rate plus 800 basis points or Libor plus 900 bps. Interest on revolving loans will be either the alternative Base rate plus 650 bps or Libor plus 750 bps.

Revel, an Atlantic City, N.J.-based gaming and entertainment company filed for bankruptcy on March 25. Its Chapter 11 case number is 13-16253.

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